Cartoon: Jobless Recovery

Cap and Trade: Editorial

The leadership's solution to this problem is to simply claim the bill defies the laws of economics.

Their gambit got a boost this week, when the Congressional Budget Office did an analysis of what has come to be known as the Waxman-Markey bill. According to the CBO, the climate legislation would cost the average household only $175 a year by 2020. Edward Markey, Mr. Waxman's co-author, instantly set to crowing that the cost of upending the entire energy economy would be no more than a postage stamp a day for the average household. Amazing. A closer look at the CBO analysis finds that it contains so many caveats as to render it useless...

When the Heritage Foundation did its analysis of Waxman-Markey, it broadly compared the economy with and without the carbon tax. Under this more comprehensive scenario, it found Waxman-Markey would cost the economy $161 billion in 2020, which is $1,870 for a family of four. As the bill's restrictions kick in, that number rises to $6,800 for a family of four by 2035...

Americans should know that those Members who vote for this climate bill are voting for what is likely to be the biggest tax in American history.

from the WSJ

Cap and Trade

Reducing greenhouse gases is the main aim of the sweeping energy bill currently up for debate in the House.

An 80% reduction is what most scientists say is needed to avoid the worst effects of global warming.

Putting the nation on track to meet this goal by 2050 will cost the average American household $175 a year by 2020, according to the Congressional Budget Office.

Under the plan, known as a cap-and-trade, polluters would have to pay to emit carbon dioxide into the atmosphere, something they currently do for free. Plus, the amount they can emit would decline each year (cap).

Industries would either pay for cleaner technology, or buy pollution permits in a secondary market (trade). Industries most affected include electric utilities, gasoline refiners, chemical makers, and steel and cement companies.

The huge costs in this system - over $100 billion a year - would normally be passed on directly to the consumer. But much of the money generated from the sale of these pollution permits is being returned to households and business as a series of tax credits and other allocations. These credits are what push down the annual household cost to a relatively low $175.

Consumers will mainly see this cost in the form of higher electric bills and gas prices. The impact on the Federal budget is minimal, with one analysis suggesting that it could actually increase revenues a bit.

read the CNN story

My thoughts: $175 per household by 2020. Ha!!!! More like $2000 per household.