Buying Corporate Support for Cap and Trade

Today, Senators Graham, Kerry, and Lieberman were expected to release their cap and trade bill.  However, immigration reform put a damper on that.  However, this is a bill that definitely should be on the radar screen.

When (if) the bill is introduced, there will be lots of fanfare about how oil companies and utility companies support the bill (or at least aren’t opposing it).

However, there’s a reason for this support.  They are being provided all kinds of goodies as discussed in this recent Mother Jones article.

There will be government-backed loans for nuclear power plants, oil companies won’t be subjected to the same cap and trade requirements as others, there will be $10 billion in subsidies for carbon capture technology research, etc.

It doesn’t take much for businesses to use the lawmaking process to benefit themselves at the expense of the public and the economy.

So, when the bill is unveiled, don’t get fooled by the fanfare regarding how many companies support the bill.  If you buy-off industries, then we’d expect those industries to support the bill.

While the environmental extremists and utility and oil companies benefit, the public will get harmed by a massive energy tax that will cut jobs, reduce personal income, and have a disproportionate impact on the poor.

The health care bill was bad enough.  However, a cap and trade bill is far worse.  Energy is an input into every good or service.  That means the government will have its hands on almost every facet of the economy.

This bill should be (in a responsible Congress) dead on arrival–the very idea that we are going to impose a massive energy tax during this recession for no good reason is absurd.  However, we don’t have a responsible Congress.  As a result, this bill could have some serious legs.