It seems that DC does not understand the simplest of the laws that govern economies, or human behavior. If you wish to get less of anything, just tax it; if you want more, liberate it from taxes. Capital runs away from taxes and races toward free markets.
If we want a sustainable domestic “clean” energy industry, just liberate production of that energy and equipment from all taxes, and capital will rush to fill that need.
Obama’s new pollution trading regulation scheme that the House passed last week is really a regressive ‘national energy tax’.
Everything we buy requires energy to produce and deliver to us. No ‘clean’ alternatives are possible for most of that production. No steel, few industrial gases, few plastics, few fertilizers, no asphalt, no cement, and no foods, or natural fibers can be made without carbonaceous fuels. So, this bill will punish all American consumers with higher prices for everything, but the poor and rural people far more than the urban and rich, as a percentage of their incomes.
Our economic recovery requires more cheap and abundant ‘domestic’ energy, not less.
Cap and Trade will penalize our cheapest and most abundant domestic energy resources, coal, gas and oil, more than some foreign energy imports, raise all energy prices for the American People, and give foreign industry a further advantage over ours, driving even more of our industry overseas.
Shipping our dollars overseas to buy energy is no smarter than doing so to buy manufactured goods. Our decades-long negative balance of trade, which Congress and this President are accelerating, is emptying the Federal Treasury and stripping all Americans of their natural wealth.
The Feds have been giving away the farm for corrupt political gain since the railroad land grants of 1862, and grossly mismanaging our economy since the Income Tax and Federal Reserve Acts of 1913. These past 96 years of economic meddling and mismanagement have compounded our debt until it is now threatening to bankrupt the Republic.
The only people who will benefit from this ill-advised bill are foreigners and the very same parasitic elite class of non-productive Americans whose similar market speculations in real estate and commodities caused this financial crisis in the first place.
The ultimate effect of this bill will be to insure that we spend the next decade, or more, locked in an intractable struggle for our very survival as a free and solvent nation.
Cap and Trade must be stopped in the Senate, at all cost!