According to a report from the Competitive Enterprise Institute (CEI), the climate bill making its way through Congress could cost the economy $300 billion. Meanwhile, Senate hearings on climate legislation are being scheduled for early October.
CEI Senior Fellow Christopher Horner has obtained documents from the U.S. Treasury Department through a Freedom of Information Act request that reveal the staggering costs of the so-called “cap-and-trade” legislation that has passed the U.S. House and is being considered by the Senate.
The Treasury documents state the following beyond the $300 billion in costs:
…domestic policies to address climate change and the related issues of energy security and affordability will involve significant costs and potential revenues, possibly up to several percentage points of annual GDP (i.e. equal in size to the corporate income tax).
Horner issued the following statement regarding his findings:
Today's release explains why the administration initially sought to keep its internal aspirations and expectations from the public: The cost of a cap-and-trade plan to businesses and consumers will be enormous. This candid perspective of what could prove to be the biggest tax increase in our nation's history now must be openly debated before the American public.
The climate legislation is also known as “cap-and-trade” because it sets up a system by which industry emissions would be limited (capped) and less-polluting businesses could trade emissions credits to help offset higher emissions by heavier polluters. The system has been tried in Europe and elsewhere with scant results. Conservatives who oppose the legislation have tagged it “cap-and-tax,” which is an accurate description of what this legislation would do.
The House version of the legislation, H.R. 2454, the American Clean Energy and Security Act of 2009, passed the House on June 26 with a vote of 219-212. While most Democrats supported the bill, 44 Democrats voted against it. Nearly all Republicans voted “No,” but 8 GOP members voted “Yes.” These GOP moderates, mostly from the northeast and West Coast, may well face opposition in primaries next year due to this vote.
Sen. Barbara Boxer (D-CA), chairwoman of the Senate Environment and Public Works Committee, plans to release her draft of the Senate climate bill next week and has scheduled hearings on the legislation for the week of October 5, according to a report from the New York Times.
Senate Democrats are optimistic that they can make the “cap-and-trade” bill a bipartisan effort and are seeking to enlist Republican Senators John McCain (R-AZ), Lisa Murkowski (R-AK) and Richard Lugar (R-IN) to support the legislation. All three senators have been supportive of the idea of global warming and increased government regulation of the energy sector in the past. Democrat strategists also think they will be able to count on Sen. Olympia Snowe (R-ME) to support the bill.
The Democrats are trolling for GOP votes because there is dissension in their own ranks about the legislation. Recently, Sen. Robert Byrd (D-WV) indicated he would oppose the bill in its current form because it would devastate the economies of coal-producing states such as West Virginia. And Republican-turned-Democrat Arlen Specter of Pennsylvania, another coal-producing state, has asked for clarification on provisions in the bill. Moderate Senate Democrats Ben Nelson (D-NE) and Mary Landrieu (D-LA) are possible defections from the Democrat fold on this legislation
In the Senate, to move a piece of legislation and avoid a filibuster, 60 votes are required to cut off debate. The Democrats reached 60 votes in the Senate with the court decision concerning the election of Al Franken (D-MN). But with the recent death of Sen. Ted Kennedy (D-MA), the Democrats now have only 59 votes. (This is one reason why Democrats in Massachusetts are working hard to change the law to allow for an immediate appointment to Kennedy’s former Senate seat instead of waiting for a special election as the law provides.)
Senate Democrats will have to beg and cajole to come up with the votes to pass the climate bill. With perhaps as many as five to seven (or more) of their own members defecting, they will need as many Republicans as they can get. It will be up to concerned citizens to make their voices heard on this potentially disastrous piece of legislation.
global warming
Comments
The report this article cites vastly overstates the costs, and has since been debunked by several sources including the Treasury itself.
"The reporting on the Treasury analysis is flat out wrong," said Alan B. Krueger, Treasury assistant secretary for economic policy. "Treasury's analysis is consistent with public analyses . . . and the reporting and blogging on this issue ignores the fact that the revenue raised from emission permits would be returned to consumers under both administration and legislative proposals." -- Reported in the Washington Post.
Even the Wall Street Journal says that cap and trade legislation offers benefits that farrrr outweigh the costs. Get the facts straight -- ACES makes environmental and ECONOMIC sense for the U.S.
Mr. Casey,
Check the sources. I have links to the Treasury documents in the article. Treasury came up with the $300 billion figure, not the American Enterprise Institute. As Mr. Horner explained, the Administration didn't want this information to get out.
If you've kept up with the current literature on the subject, you would know that global warming is not "settled science" and that many accomplished scientists dispute the claims of man-made global warming.
Name ONE benefit that this legislation will bring to our nation that won't bankrupt us in the process. And take a look at other places where cap-and-trade schemes have been tried. It doesn't work. It's a failed policy before it even starts and it will bankrupt numerous businesses. It's a job killer, not a job creator. That's why so many senators, even some Democrats, are opposing this legislation.
You have got to be kidding me "Casey" as close as this country is to Bankruptcy you want to go ahead and try this! The fact that cap-and-trade schemes have FAILED, does not scare you.
You do not replace a patients kidneys in the middle of a heart attack!
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