PhotoJock/Morguefile. com
The Obama administration's carbon tax program is an incentive to reduce greenhouse gases (GHG's). It imposes a direct fee on fuels based on the amount of GHG's they emit, but does not set a limit on the amount of emissions.
Carbon tax effects businesses and consumers
The tax is imposed on the sale of fuel, from "upstream" producers, such as coal mines or natural gas or oil wells. The cost of the carbon tax can then be passed "downstream" to consumers from electric utilities, oil and gas refineries, and fuel transporters. Ultimately business and consumers pay for carbon-intensive good and services.
The impact on businesses depends on how much fossil fuel-based energy it uses. The higher the energy usage, the more users will be effected. Lower-income consumers pay a higher percentage of their income for such things as electricity and gasoline.
Difference between carbon tax and cap-and-trade
The fundamental difference between the carbon trade and cap-and-trade is how they establish prices and reduce emissions.
A carbon tax imposes a direct fee (the carbon price) on fuels based on the amount of GHG's they emit but does not set a limit on them.
Cap-and-trade establishes a limit, or "cap," on GHG emissions, but the price for emission allowances (the carbon price) is determined by the supply and demand for allowances in the emission trading market.
Obama carbon tax and cap-and-trade opponents
The opposition to Obama's carbon tax-and-trade programs is being resisted by organizations such as the U.S. Chamber of Commerce. The main reason is what the cost would be to businesses although it is an accepted fact that it would be passed on to consumers. The Chamber feels that it is a very expensive tax used to transfer wealth.
It is expected that there will be months of negotiations but that eventually Obama is expected to have the programs in place during his first term in office.
Previous articles by examiner Watchdog Politics
Comments
FACT: Obama promised not to raise taxes of ANY kind on any family that makes less than $250k. But two weeks after his inauguration he raised taxes by 62 cents a pack on the nation’s 43 million smokers.
To see the proof, go to Google and type “obama dover sep” and you’ll see a YouTube video of Obama making this no-tax pledge while speaking in Dover, NH on Sep 12th. Obama is a liar and he keeps on lying. ALL of his plans for healthcare, cap-and-trade, and everything else will significantly increase our taxes and costs for all sorts of goods and services. Just say “NO” to Obama’s socialist agenda.
Got something to say?
Examiner.com is looking for writers, photographers, and videographers to join the fastest growing group of local insiders. If you are interested in growing your online rep apply to be an Examiner today!