Obama's $700 billion new tax

Obama's $700 billion new tax

June 17th, 2009 in Opinion Free Press

When you read about the "cap-and-trade" bill on "global warming" that President Barack Obama is pushing before Congress, you may not understand how it would affect you. But everyone should be wary -- because it's about imposing what would amount to a new $700 billion tax on the American people.

The proposal is called the "Waxman-Markey Bill," named for Rep. Henry A. Waxman, D-Calif., and Rep. Richard J. Markey, D-Mass. It involves an effort to reduce emissions of carbon dioxide. The government would set limits on carbon dioxide emissions -- then allow industries that cut their emissions below the legislated standard to sell their non-emissions to companies that are unable to meet the government standards.

It has been estimated the cap-and-trade plan would raise the costs of carbon dioxide-emitting firms about $700 billion. If companies were unable to cut emissions and were unable to afford buying emissions rights, they could be forced out of business -- costing the jobs of their employees.

Look at the very clear words of President Obama's Director of the Office of Management and Budget Peter Orzag: "Under a cap-and-trade program, firms would not ultimately bear most of the cost of the allowances but instead would pass them along to their customers in the form of higher prices for products such as electricity and gasoline."

Did you get that? Ultimately, the "customers" -- ordinary Americans -- would be paying the new burden of about $700 billion in higher energy prices.

Budget Director Orzag elucidated: "The rise in prices in energy and energy intensive goods and services would impose a larger burden, relative to income, on low-income households than on high-income households."

So what President Obama's cap-and-trade plan would do is tax everybody more.

Competitive Enterprise Institute spokesman Myron Ebell summed it up: "The Waxman-Markey bill would set many records: the biggest tax increase in history; the biggest government interference in the people's lives since the Second World War; the biggest transfer of wealth from consumers to special interests in American history; the biggest opportunity for corruption and manipulation by Wall Street traders ever created. It would cause consumer energy prices to go up relentlessly for decades, create some jobs while destroying millions of jobs, and produce perpetual economic stagnation."

Wow! Is this something you want?