Originally Posted by
Sr. Barco
I have read that the new U.S. budget will contain a system of cap and trade. I understand that the cap and trade system will inevitably cause air fares to soar since fossil fuel emmissions will essentially be taxed via the purchasing of credits.
Can anyone weigh in on this subject? This seems like a huge deal for all of us.
S.B.
The
Big Spender's carbon tax (and it is a tax) goes like this: industry is permitted some finite number of carbon emissions. Those who will exceed the quota may purchase the quota of another, less carbon intensive company. In practical terms, to continue to operate the coal fired plant that now provides you with electricity must pay the wind turbine farm money.
There is a reason we still use coal to generate so much electricity--it is efficient, cheap, and it already works.
There is a reason that we have to subsidize wind farms and that there aren't very many of them--they are inefficient, expensive, and we can't yet rely on them to power our grid.
If you want to pay the inefficient, subsidized electricity rates, you are for the
Big Spender's carbon tax. If you want to pay less for electricity, and any other product or service that generates carbon emissions, then you are against the carbon tax.
The carbon tax is supposed to generate about $650 billion over 7 years--call it 90 billion/year. We currently buy 390M gallons of gas/day. At $2/gallon that is about 280B/year. So, at todays prices the
Big Spender's carbon tax (if only applied to gasoline) would be like paying another $.70/gallon. If you are for the carbon tax, you won't mind paying that extra. (Caution: math done quickly by TLAR--don't bet the farm on these numbers)
If you fly for an airline, I'm sure your passengers won't mind paying extra for their tickets to offset their carbon.
The carbon tax is the solution for problem that does not exist. Global warming was the bogeyman during a natural cyclical warming in the late 20th century. 1998 was the recent peak temperature year. The calculated average temperature from all 4 major indices has been going down.
Or they talk about "climate change" whetther the temperature goes up or down. Remember, something that explains everything, explains nothing.
No elected official will make these cap and trade decisions. If elected members of congress pass this legislation, it will be signed by the
Big Spender and then commisars will, legally, tell you what you can spend, buy, produce. And they will tell you what it is all worth.
Crap and trade is a bad idea.
WW