Climate Change Bill
HEALTH CARE, HEALTH CARE, HEALTH CARE, CLIMATE CHANGE, HEALTH CARE
While the death of Michael Jackson dominated the news headlines, the House of Representatives passed a Climate change bill that will have dramatic effect on every American.
I'm not sure if it was intended or just worked out that way but the democrats in the House did a little sleight-of-hand on Friday and passed the largest tax bill in American history. ABC hosted what amounted to Obama Care infomercial last week (disguised as a news show) and health care has dominated the talk shows and news programing so it went somewhat under the radar that Pelosi tried to pass the largest energy tax bill that America has ever seen. And she succeeded!
This Climate Change Bill is touted as the first measure to reverse man made climate change on the planet. If you go back and read my first blog you will find I am not sold on the idea that man has caused the climate to change. Quick recap: The primary component of greenhouse gases is water vapor. CO2 comprises less than 10% of all greenhouse gases. Man made CO2 comprises less than 10% of the total CO2 emissions. So, man made green house gases is less than 1% of total green house gases. In addition, Al Gore's charts shows a parallel between increased CO2 and the surface temperature of the planet. A closer look shows that the increased CO2 levels FOLLOW the increased temps so they cannot have caused the change.
CAP-AND-TRADE: This bill is essentially a cap-and-trade bill. What that means is each company is allotted a certain amount of CO2 emissions. If the company goes over that limit they must purchase more, resulting in basically a tax. The thought behind the plan is that the largest polluters will have to pay more and this will entice them the adopt "greener" energy solutions. Basic supply and demand. Price goes up so the demand goes down.
IMMEDIATE EFFECT: The largest polluters are the energy companies. Burning of fossil fuels to create electricity creates a lot of pollution. This will immediately cause the cost of energy to increase. Also subject to this bill are oil refiners, natural gas producers and any company that produces energy on-site. So virtually all our energy will cost more money. Every manufacturer will now have higher energy costs, higher transportation costs and will have to increase their prices. So now we are paying more for every goods and services we purchase. The democrats estimate the initial cost is approximately $175 per household but independent studies estimate $436 initially and $1,241 in 2035.
LONG TERM EFFECT: It does take much foresight to see that in a world economy if one country increases the cost of production on all their manufacturers and the rest of the world does not, that one company will have a disadvantage and the world will purchase their goods and services from the other countries. This will either cause U.S. manufacturers to close down or move more of their operations to other countries. Either way, this will cost American jobs. Since farming is energy intensive that sector will be hit the hardest costing food costs to rise.
This tax does not hit people evenly. Lower income people spend a higher percentage of their budget on energy costs so this will be a regressive tax. In addition, rural Americans spend more on energy than urban Americans so it will hit them harder. (Rural America typically vote overwhelmingly for conservatives, coincidnce?) Candidate Obama kept telling us only the top 5% of American wage earners are going to pay more taxes under his plan. Maybe, technically, that may be true but EVERY SINGLE AMERICANS WILL BE PAYING MORE TO THE GOVERNMENT either directly or indirectly through higher energy costs.
America is the second largest polluting country in the world next to China. Even though, per capita our carbon footprint is much higher, we also produce twice as much as China. Approximately 25% of the world CO2 is produced in the U.S. Let's say we can cut or CO2 emissions by 20%, the world is still putting 95% of the pollutants into the air. Is a worldwide 5% reduction going to save the planet? Unless we can get the rest of the world to put the same restrictions onto their producers all this bill will do is give the government a much larger income and cause more of the world production to be produced outside the U.S. borders.
This was an 1,100 page bill with 300 pages of that added at 3:00am the night before yet they felt compelled to vote on the bill the following day. Al Gore, President Obama and Nancy Pelosi spent the day on the phone making deals and pressuring congressmen(women) to pass the largest income generating bill in the history of the U.S. No one could have read and comprehended all aspects of the bill but that was probably the plan. If the bill is such a great idea, if it will save the planet, if it put America ahead of the world then why didn't they sell the case to the American people? Why was this snuck through the back door when no one was looking?

