John Boehner’s blog, notes that his concerns about Obama’s cap and trade bill are now being echoed in the mainstream media.
Investor’s Business Daily explains:
Tax-challenged Treasury Secretary Timothy Geithner and White House Budget Director Peter Orszag went to Capitol Hill on Tuesday to defend a federal budget that assumes $650 billion in revenue from a cap-and-trade carbon emissions scheme…
“The president’s budget increases taxes on every American, and does so during a recession,” pointed out Rep. Dave Camp, R-Mich., ranking member on Ways and Means. “And that means higher prices for Americans for food, for gas, for electricity, and in a state like Michigan for home heating — pretty much everything they buy.”
This carbon tax will be paid by energy companies, manufacturers and public utilities and will be passed on to consumers. Camp’s Michigan gets 60% of its electricity from coal. But Obama’s plan has always been to make fossil fuels so expensive that boondoggles like wind and solar suddenly look competitive.
The article concludes:
Obama’s cap-and-trade budget is a recipe for permanent recession. An analysis by the George C. Marshall Institute estimates GDP losses of as much as 3% in 2015 and as much as 10% in 2050 as a result of this measure.
The Detroit News reports that:
President Barack Obama’s proposed cap-and-trade system on greenhouse gas emissions is a giant economic dagger aimed at the nation’s heartland — particularly Michigan. It is a multibillion-dollar tax hike on everything that Michigan does, including making things, driving cars and burning coal.
Let me be clear. Obama intends to raise taxes on energy producers. These energy producers will pass these tax hikes onto consumers. If the prices rise too high, Obama may fix prices lower which would cause a shortage. A shortage would potentially cause gas lines and power rationing. If things get worse, it could lead to the nationalizing of the energy producing companies.
UPDATE: On John Lott’s blog, he links to this Reuters story in which Hillary Clinton tells the European Parliament: “Never waste a good crisis … Don’t waste it when it can have a very positive impact on climate change and energy security”. This quotation echoes Rahm Emanuel: “Never Allow a Crisis to Go to Waste”. This might explain why Democrats are so bold about having government take control of the free market.