I have made no secret of my objections to a proposed cap-and-trade energy tax that will result in increased costs for every single American. The tax would require energy producers and businesses to pay to emit carbon emissions in the hope of reducing greenhouse gases. You, the consumer, would be footing the bill.
I published an op-ed in the Star Tribune earlier this month highlighting the dangers of this piece of legislation and what it means for Americans. In the piece, I cited an MIT study that found the average American household would experience increased bills of $3,128 per year if this legislation became law.
This statistic has drawn much criticism in the local news and around the nation because the MIT professor involved with the study, John Reilly, questioned the validity of the interpretation used by myself and many Republicans.
But in an interview with the Weekly Standard, Professor Reilly clarified his critique and accepted the Republican use of the statistic.
As reported in the Weekly Standard, “MIT professor John Reilly admitted that his original estimate of cap and trade’s cost was inaccurate…’I made a boneheaded mistake in an excel spread sheet. I have sent a new letter to Republicans correcting my error.’”
Interestingly, Professor Reilly also assumes that Washington’s better angels will prevail over its need for revenue to pay for its expensive spending habits.
“Reilly assumes that the $3,128 will be ‘returned’ to each household. Without that assumption, Reilly wrote, ‘the cost would then be the Republican estimate [$3,128] plus the cost I estimate [$800].’”
Reilly continued, “If the Republicans were to focus on that revenue, and their message was to rally the public to make sure all this money was returned in a check to each household rather than spent on other public services then I would have no problem with their use of our number.’”
I am more skeptical of Washington’s intentions and I believe that the Democrats have no intention of using a cap-and-trade system to deliver rebates to consumers; they want the tax revenue to fund more government spending. Key Democrats – including President Obama and Senators Reid & Conrad – have even said they want to use cap-and-trade to fund their government-run health care plan.
The reality is, it’s anybody’s guess as to how the cap-and-trade revenues would end up getting spent. What we do know is that you’ll be paying them but it will be the government spending them — not you — and that’s the problem.
I hope the press is just as quick and eager to correct the report that the GOP’s estimate of cap-and-trade’s cost is a “pants on fire” falsehood as they were in claiming it.
(Cross-posted at Townhall.com and The Hill’s Congress Blog)
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$3,928
Michael DeWeese (Diary) Wednesday, April 22nd at 2:54PM EST (link)“the cost would then be the Republican estimate [$3,128] plus the cost I estimate [$800]“
Brain Dead Republican
yep
10ksnooker (Diary) Wednesday, April 22nd at 3:02PM EST (link)I guess adding is something the MIT types think normal people can’t do.
Thank you for pointing this out Rep. Bachmann
Brian Hibbert (Diary) Wednesday, April 22nd at 3:20PM EST (link)Keep fighting to stop this madness.
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that is really high
mom2oneson (Diary) Wednesday, April 22nd at 3:33PM EST (link)Right now I pay around $1700 a year for electric and gas and that is too high already. $3928 would be more than half of what I earned last year.
I agree with Brian thank you for fighting this.
it wouldn't be just gas
Next93 (Diary) Wednesday, April 22nd at 5:19PM EST (link)That $4,000 would be spread across every dollar you spend; you can’t name a product or serivce that isn’t touched by energy costs.
The good news is, that with the inflation we can expect over the next decade as a result of this economically ignorant administration’s behaviors, that $4,000 will probably become something like $8,000 (when the price of a loaf of bread reached about $5.00).
Obama was The One in 2008.
He’ll be a BIGGER one in 2012.
I've paid $5 and more for a loaf of stale bread.
Achance (Diary) Wednesday, April 22nd at 8:08PM EST (link)Prepared food prices in rural Alaska are astounding. Even in urban Alaska, brand name bread shipped in from the Lower 48 is commonly $3-4 and sometimes more for “fashionable” bread.
I don’t remember the exact price when I first came here in the ’70s, but it was made in local bakeries and very, very expensive. Of course, all the grocery stores and bakeries were union in those days. Then with the Pipeline came better transportation followed by big box stores. Then came a war with the unions. The unions lost. Now there are no more bakeries other than some gourmet ones, but the stuff is still tres spendy because of the freight costs on Jones Act ships.
In Vino Veritas
Weren't there stories about $12.00 eggs during the gold rush days?
Next93 (Diary) Thursday, April 23rd at 8:47PM EST (link)I seem to remember reading (Jack London, maybe?) something about the combination of gold-rich miners and a shortage of fresh food in the days of the Alaska gold rush, leading to $12.00 for a single egg, in 1880′s currency.
Or was that just a tall tale?
Obama was The One in 2008.
He’ll be a BIGGER one in 2012.
I don't know about $12 eggs, but
Achance (Diary) Thursday, April 23rd at 8:54PM EST (link)I’ve seen money become meaningless back during the Pipeline. If you wanted something, you just paid what it took to get it. I’ve seen some really skanky strippers with their garters stuffed with $100 bills. I’ve played Paycheck Poker with $2000 pay checks – that’s in Seventies dollars, and there was another one coming next week.
In Vino Veritas
I don't want to aggregate my energy costs.
redneck_hippie (Diary) Wednesday, April 22nd at 4:16PM EST (link)Thinking about that annual number would depress me because there are only so many ways to conserve and save. Once you’ve exhausted all avenues to weatherize, upgrade appliances, etc., it is just another nondiscretionary budget item that increases at a higher rate every year.
People need to be made aware of the true cost. Thank you!
Music to my ears
Brian Simpson (Diary) Wednesday, April 22nd at 4:40PM EST (link)There’s a certain liberal Missouri blog that I am now going to enjoy beating them with this info. They ran with his original criticism. Now they get to eat crow.
Thank you Rep Bachmann
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Important principles may and must be inflexible. ~ Abraham Lincoln
My prediction
1stRichard (Diary) Wednesday, April 22nd at 7:47PM EST (link)All of you are way off on your estimates. Corrections should be made in the influence of supply and demand, NIMBYisem and the multiplying factor in that an increase in one also increases the next that in turn increases the previous. You should also add in the extra administrative costs as well. Also this will be a major economic disaster for people that have to heat their house more in the winter time. Being from New England I have seen this many times, they are already trying to shove one of them catalytic converter contraptions up my wood stove pipe….
We always end up being screwed the most up here…
It would not surprise me one bit that it will cost more then double the highest estimate as this was proven in the past…
Why do your neighbors insist on electing Democrats?
Flagstaff (Diary) Wednesday, April 22nd at 7:55PM EST (link)“Being from New England I have seen this many times, they are already trying to shove one of them catalytic converter contraptions up my wood stove pipe….
We always end up being screwed the most up here… ”
Vermont must DESERVE Pat Leahy, they keep asking him back.
“The press is so powerful in its image-making role that it can make a criminal look like he’s the victim and make the victim look like he’s the criminal. If you aren’t careful, the newspapers will have you hating the people who are being oppressed and loving the people who are doing the oppressing.”– Malcolm X, Audubon Ballroom, December 13, 1964
Why!
1stRichard (Diary) Wednesday, April 22nd at 10:27PM EST (link)This is the five college area, yes five indoctrination camps in one small location. Voter turnout typically runs about 25 to 30 percent in my town but when it comes to voting in a liberal it suddenly jumps to over 80 percent. Heck, I would even welcome normal democrat as an improvement around here. All we have are far left wing socialist moonbats that keep getting elected over and over again and again. It is so bad here, the choices are democrat moonbat, republican blank or who I usually vote for, other Mickey Mouse. We the residents don’t have a vote or a choice….
Here take a look at occupations on this list
http://blog.masslive.com/breakingnews/2009/02/MLComplete2.pdf
I'm amazed at doctors voting 'blue.'
Flagstaff (Diary) Thursday, April 23rd at 2:16AM EST (link)Who did all these contributions go to?
“The press is so powerful in its image-making role that it can make a criminal look like he’s the victim and make the victim look like he’s the criminal. If you aren’t careful, the newspapers will have you hating the people who are being oppressed and loving the people who are doing the oppressing.”– Malcolm X, Audubon Ballroom, December 13, 1964
Obama
1stRichard (Diary) Thursday, April 23rd at 7:49AM EST (link)Doctors like socialized health care
None that I know do. nt
Flagstaff (Diary) Thursday, April 23rd at 10:19AM EST (link)“The press is so powerful in its image-making role that it can make a criminal look like he’s the victim and make the victim look like he’s the criminal. If you aren’t careful, the newspapers will have you hating the people who are being oppressed and loving the people who are doing the oppressing.”– Malcolm X, Audubon Ballroom, December 13, 1964
Doesn't matter if it's $3,000 or $8,000.
Flagstaff (Diary) Wednesday, April 22nd at 7:59PM EST (link)It’s all going to be rebated by Obama.?! That’s what they tell us.
Right. Just where do you think THAT money will come from? Our own back pockets, of course.
“The press is so powerful in its image-making role that it can make a criminal look like he’s the victim and make the victim look like he’s the criminal. If you aren’t careful, the newspapers will have you hating the people who are being oppressed and loving the people who are doing the oppressing.”– Malcolm X, Audubon Ballroom, December 13, 1964
From front pocket to back pocket
Erick Brockway (Diary) Wednesday, April 22nd at 9:33PM EST (link)Perfect! More likely scenario is the “rebates” would sunset anyway, leaving us with nothing but the higher prices.
Note to lefties;
“Don’t be afraid to see what you see.” -Ronald Reagan
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That, too! nt
Flagstaff (Diary) Wednesday, April 22nd at 9:36PM EST (link)“The press is so powerful in its image-making role that it can make a criminal look like he’s the victim and make the victim look like he’s the criminal. If you aren’t careful, the newspapers will have you hating the people who are being oppressed and loving the people who are doing the oppressing.”– Malcolm X, Audubon Ballroom, December 13, 1964
What will happen
Menlo (Diary) Wednesday, April 22nd at 11:04PM EST (link)I wonder if people will get over their adoration for Obama and the Democrats before 95 percent of the population dies of heat stroke, hypothermia, frostbite, and/or spoiled food.
We already hear news reports about people dying during hot summer days because they cannot afford air conditioning.
Why not just send all Americans who aren’t super-wealthy to gas chambers?
“The ultimate touchstone of constitutionality is the Constitution itself and not what we have said about it.” -Felix Frankfurter
Cap & Trade will do more harm than good
izoneguy (Diary) Thursday, April 23rd at 12:09AM EST (link)It will actually increase the amount of CO2 released into the air. If producers don’t have an actual amount they must cap then they will crank up the power plants so that they can charge you & me even more.
The power companies will use cap & trade as an excuse to soak us even more. They don’t care they will just pass it on. Big companies will pay much more as well. Again they will just pass on the increased costs.
And Washington will use all that “found” money for what ever they feel like.
Obama will show it as an example of how bail-outs won’t be needed and your tax rates will go down. Of course they will not mention that everyone’s electric bill is now double & triple what it use to be.
And of course the poor will not pay as they don’t pay for anything anyway. The rich never pay attention to what they pay and what is another $10,000 0r $20,000 a year to them anyway?
People up north will turn down the heat in the winter and start burning more wood – a lot more. The increased affect of this will wipe out any cap & trade benefits (which as you see, there won’t be any).
This is truly taxation without representation.
Obama is spinning yarns on this earth day about harnessing wind
power and that it will provide 20% of America’s power by 2030.
Doesn’t much matter, by 2030 America will be bankrupt.
If Obama is not defeated in 2012 and if the new leaders don’t have a plan to reverse the damage that Obama is doing – then nothing matters – nothing.
The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.
Not necessarily...
vettepilot (Diary) Thursday, April 23rd at 9:11AM EST (link)The lower incomes will end up paying for this, even if Uncle Sugar pays their gas and electric bills for them. The cost to produce ANY good and service is going to go up as producers have to charge more to cover their increased utility bills, not to mention their own offsets.
The other part to this that nobody is mentioning is that it will amount to a inherent state/local sales tax increase as well because the increased cost of goods will result in higher sales tax charges for the same products.
And Obama might as well either let the automakers go bankrupt now or just deed them over the Treasury because if you think cars are expensive now, by the time the steel-makers, rubber companies, etc pass their costs on down the line, only those greedy Wall Street types are going to be able to afford to drive. But hey, they can just build high speed rails and forcibly relocate everyone else, right?