In the October 2, 2009 Virginia Attorney General’s debate, my opponent and I had the opportunity to ask each other one question regarding our top priorities. His top priority - “global warming,” which of course comes along with a raft of legislative and regulatory burdens and taxes. At the federal level, this legislation is called “cap and trade.”
The (so-called) “Cap and Trade” legislation is meant to restrict greenhouse gas emissions from industry, mainly carbon dioxide from the combustion of coal, oil, and natural gas. A better name for this legislation would be “Ration and Tax.” This is because under this bill, the government would require anyone who uses electricity, who drives a car, or who runs a business to hold a “ration coupon” for his or her emissions, with the number of coupons being reduced every year to force a reduction in emissions, thus producing higher energy taxes for the average citizen. The net effect of this “Ration and Tax” would be economic harm and a loss of jobs for our citizens, and all without having a noticeable positive impact on the global climate. The coal industry, which provides over half of Virginia’s electricity, would be particularly hard hit by this bill.
The economic costs of “Ration and Tax” are well documented. This year’s House bill was estimated by the Heritage Foundation to lose 2.5 million net jobs by 2035. The loss of economic output: $9.4 trillion. The jobs lost in Virginia: 52,700. The report also stated that by 2035, Virginian’s will see their electricity prices rise by $1,031.73 and their gasoline prices rise by $1.31 per gallon solely because of “Ration and Tax”. Peter Orszag, President Obama’s current budget director, forecast the scheme would cost $1 trillion over the next 10 years and $5-$7 trillion through 2050. The fact that the Senate version of this legislation requires an even bigger cut in emissions than the House version means that the negative impact of the Senate legislation is likely to be even greater.
Now, some say that “green jobs” created by “Ration and Tax” are going to offset these losses. However, all of the credible studies show that the NET jobs lost are substantial. A study for the Teamsters and Sierra Club – both allies of those advancing “Cap and Trade” – found: “Wage rates at many wind and solar manufacturing facilities… fall short of income levels needed to support a single adult with one child.” In Spain, the experience has been 2.2 real jobs destroyed for every “green job” created.
