Is Obama Administration Hiding True Cost of Cap-and-Trade?

by William Yeatman on September 28, 2009

in Blog

The Obama administration is sending mixed messages on energy policy.  On the one hand, Obama’s top budget guru Peter Orszag told Congress last year that a cap-and-trade is designed to raise the price of energy.  On the other, the President says a cap-and-trade would spur economic growth.

Taxes and economic growth are mutually exclusive, so it seems as if President Obama is trying to have his cake and eat it, too.

To understand what the Obama administration is really thinking about energy policy, CEI’s Chris Horner filed a Freedom of Information Act request charging the Treasury Department to release all internal communications regarding cap-and-trade.

The Treasury Department responded on September 11th with 5 redacted documents, which were then released to the public by the Competitive Enterprise Institute. CBS news reporter Declan McCullagh picked up the FOIA story and the eye-popping cost estimates-”equal in scale to all existing environmental regulation”-soon attracted massive media attention.

It turns out that those were only the low-end cost estimates. On September 18th, the Treasury Department released unredacted and previously withheld documents. These memos suggest that cap-and-trade costs would be “equal in size to the corporate income tax.”

Is there more? That’s a fair question in light of the Treasury Department’s suspicious partial disclosure on September 11th. It’s also curious that Treasury failed to include any e-mails. I would think that economic analysis of a major policy would have generated a few e-mails up and down the chain of command. After all, this is a federal bureaucracy-nothing is spontaneous in a federal bureaucracy.

To find out what the Obama administration is hiding, Mr. Horner today informed the Treasury Department of CEI’s “intent to sue” if Treasury does not come into compliance with its legal obligations under the Freedom of Information Act.

If President Barack Obama is serious about open and transparent government, he should press Treasury to release all communications on cap-and-trade. Only then will we know what energy rationing actually costs.

To see Mr. Horner’s letter informing the treasury Department of CEI’s intent to sue, click here.

AFL September 29, 2009 at 3:55 am

Americans can not afford cap and trade. Write Congress to voice opposition to this disastrous piece of legislation that will raise taxes and kill jobs at http://tiny.cc/pxIgi.

article October 8, 2009 at 7:00 am

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