MSNBC has an article up today on Obama's CO2 cap-and-tax revenue plan to pay off the pork balance the budget:
Congressional Budget Office Director Peter Orszag, now the head of the Office of Management and Budget under Obama, testified before the House Ways and Committee in September that such a system “would would create a new commodity: the right to emit CO2.”The CBO estimated that “by 2020, the value of those allowances could total between $50 billion and $300 billion annually (in 2006 dollars)” — an enormous revenue stream that at the high end would be equal in size to roughly half the benefits paid out by Social Security last year.
You have to scroll down for this, but at least they reported it:
What impact would the emissions curbs have on consumers? Orszag testified last year that the firms that were required to buy permits would pass the costs along to their customers in the form of higher prices. The price increases, he said, would “be essential to the success of a cap-and-trade program” because they would be the mechanism by which businesses and households would be forced find ways to cut their greenhouse gas emissions.
Won’t that harm consumers, especially the poor?
A recent study by the Center on Budget and Policy Priorities, a liberal think tank, said, “Low-income consumers are the most vulnerable (under such a system) because they spend a larger share of their budgets on necessities like energy than do better-off consumers.”
They also are “least able to afford purchases of new, more energy-efficient automobiles, heating systems and appliances,” it said.
The center advocates protecting low-income consumers through a system of rebates and tax credits, though it is unclear whether Congress will adopt that scheme.
Unclear. Yeh.
Send your green tights to the cleaners, Rob. You'll need them soon. [photo: theage.com.au]
UPDATE: I'd actually be OK with this scheme if they made carbon offsets tax-deductable.
UPDATE: Grist: Why solving the climate crisis will increase GDP. The only optimistic thing democrats are saying right now, so I'll take it.
UPDATE: $112 billion worth of circular logic? CO2 tax on carbon-based utilities generates "revenues" which are directed to tax credits for lower- and middle-income working families, and help for those dealing with higher energy costs. Man's a genius.
yes and we can not pay our bill on heat now and it would raise the price of everything food/cars any thing that use energy and thing about our of export they will be higher and we will not be able to sell them all this to save 5% of the 100% of CO2 and the other country will have a good time with this as they just keep on going on there way and we will lose out and no one know if this will even help half say yes and the other half say no so we should sell out our country and live like 3rd world country you are out of you mind
Great now they are going to tax what we exhale. Another genius idea? I do not think so at all. If you think the economy is bad right now just wait. When the cost of basic goods increases the people least able to afford them are the most hurt. That would be an extremely regressive tax on the poorest of people. This is just another example of how our govermnent is being hi-jacked by people who do not get it. That goes for both republicans and democrates.
This system is ridiculous, its so liberal its probably insulting to even Al Gore. I cannot say he lied about change (clearly) but this is insanity, he claims to be lowering taxes for all under $250,00 but all hes doing is making up the difference (+ some) by taxing everything we use.
Man's anything but a genius.
So the US taxes everyone for emissions. Wow, the rest of the world does not. China just leaks that stuff right over to CA. So we now pay for the illegals and pretend to pay for the emissions. But the other countries don't. Does not solve anything except for the people that work have to pay more. Won't solve anything except to send this country into more debt. But don't worry, you will be dead by the time your kids can't pay for it.
This is the most stupid thing ever. Is America really that stupid to think if we pay $20 for something to pretend we are saving the world when the rest of the world pays $2 for it and still produces the emissions?
Maybe those smart people in CA who are paying for those illegals can stop asking for money from the rest of the US to back their stupid policies. Why is the CA budget negative? People should stop spending what they don't have.