Cap And Trade Tax Hike

House Speaker Nancy Pelosi has put Cap-And-Trade legislation on a forced marched through House and the bill and may get a full vote as early as Friday. It looks like Democrats will have to destroy the discipline of economics to get it done. Despite House Energy and Commerce Chairman many payoffs members and Rural Blue Dog Democrats remain wary of of voting for a bill that will impose crushing costs on their home district businesses and consumers. The Congressional Budget Office did a analysis on the Cap-And-Trade Bill sponsored by Waxman-Markey Bill. The CBO said the climate legislation would cost the average American Household only $175 a year by 2020. Waxman and Markey explained to the press conference that Cap-And-Trade Bill would cost the average American no more than a postage stamp. To get support for the Harry Waxman was forced to water down the cap in the early years to please rural Democrats and then ratchet up in the late years to please liberal Democrats. As the cap tightens and companies are stripped of there intinal opportunities to to offset the emissions, the price of the permits will skyrocket beyond the CBO estimate $28 per ton of carbon. The corporate costs of buying these permits will be passed on to the consumers. The biggest problem with Cap-And-Trade Bill is CBO analysis of the day-to-day costs for operating a trading program rather than wider consequences energy restrictions would have on the economy. The hit to the GDP is the real threat to this bill. The whole point of the bill is to raise prices of electricity and gas so Americans will use less energy. The higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars. Consumers will cut back on there spending, which will turn back production of goods. Which results in fewer jobs created and higher unemployment. Therefore, some companies will instead move there operations overseas with the same result. The Heritage Foundation found that the Cap-And-Trade Bill will cost 161Billion Dollars in 2020, which is $1,870 for a family of four. As the Bill restrictions kick in the number will rise to $6,800 for a family of four by 2035. There were three amendments offered by Republicans. If gas reached $5 gallon, unemployment reaches 15% and if electricity prices rise over 10%. Finally, Americans should know that those members of the House who vote for the climate bill are voting what is likely to be the biggest tax in American history.