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Bad governance yields largest tax bill in history
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Tankers soon will replace U.S. refineries. (AP photo)
Friday, in a text book example of bad governance, the House of Representatives passed by the slimmest of margins what is believed to be the largest tax bill in United States history. Not a single one of the 219 representatives who voted for it knew exactly what was in the bill.
The major part of the bill is its Cap and Trade provisions. Basically, the government will sell permits to pollute to U.S. Manufacturers. These permits can be traded around, so that if, for instance, ACME Widgets has a permit it doesn't need, it can sell it to George's Gadgets. This increases every comapny's cost of business, regardless of how the permit is acquired, and will result in increased prices paid by consumers.
There is no getting around the fact that prices of everyday goods and services will rise as a result of Cap and Trade. Estimates range all over the place and range from around $170 per family to $3,000 or more depending on whether you are talking to a Democrat or a Republican respectively. One thing is certain, you and I will be paying more for electricity, gasoline, clothing, hamburgers, hot dogs, apple pie and candy bars. Everything has a carbon footprint, which makes this bill a tax on everything.
Adding new taxes in the middle of a deep and long running recession is not a bright idea. Taking more money out of the hands of consumers when they are already having to struggle to make ends meet, when nearly 10% or us are out of work, is not likely to jump start the economy.
In addition to increased prices through this ill considered taxation, we will be hurt in other ways. The American Petroleum Institute estimates that Cap and Trade will add 77 cents to each gallon of gasoline refined in America. However, if the gallon of gasoline is imported in refined state – ready to put in your tank – the Cap and Trade tax will only be around ten cents a gallon. As a result more refined gas will be imported and less refining will take place here.
One of the reasons given for gasoline jumping up to $4.00 per gallon last year was the lack of refining capacity in the United States. We currently cannot refine all of our gasoline needs. So thanks to the dunces in Washington, you can look forward to even higher gasoline prices at the pump as we become more dependent on foreign powers, many of which are unfriendly to say the least.
If it works for the oil companies it will work for other industries as well, Look for more jobs to move overseas as businesses seek to hold down their costs. This bill has the potential to be a major job killer.
We can at least take solace in the fact the the House of Representatives took its responsibilities seriously and gave careful consideration to these and other problems in the bill prior to passage. Oh wait a minute, I forgot, they didn't do that. They took out the cattle prods and rammed this thing through as quickly as humanly possible. They didn't even bother to pause long enough to read it.
The bill still has to pass in the Senate and perhaps sanity will prevail there. But then again, nobody ever lost a dime underestimating the United States Congress.
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