The Cap and Trade Cash Cow

by Julie Walsh on March 6, 2008

I believe that even if the case for catastrophic anthropogenic global warming was completely disproved, some groups will never give it up. The reason is this: advocates of big government need lots of money for their government programs. Policies such as universal health care are hardly cheap, and “pay-go” is very restrictive.
Taxing big oil companies for them is a start—the tax title is under consideration again. But to fund monumental, New Deal-like programs, trillions of dollars are needed.
In comes cap and trade. Auctioning carbon emission allowances would provide a colossal new revenue stream.
They will most likely start this frog in cold water, so the first projections of consumer costs will be low. But, as with the origins of the federal income tax, this can later be ramped up to blood-sucking proportions.
The coming together of several sectors in favor of cap and trade policies has created the perfect storm. Though industry has often been a force against big government, some in the energy industry currently support cap and trade, expecting handouts and windfall profits. It makes for strange bedfellows—environmental pressure groups aligned with Big Oil. And major banks, large investment firms, and farmers want a piece of the action, too.
Stopping cap and trade is possible. But as with the demise of the immigration/amnesty bill, it will require the American people to speak out against a cap and trade tax.

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