Wednesday, February 25, 2009

"Revenue" I thought it was to save the earth.

Congress may seem like they are mathematically challenged but they are seriously addressing the "Revenue" side of the equation to pay for their current and planned spending spree.
One of many tricks up their sleeve is "Cap & Trade" This one is urgent on their list because it is not a tax.
EXCUSE ME!!! Not a tax!!!
It should be obvious now to any thinking citizen the "cap & trade" is just another vehicle for congress to tax us. The system failed miserably since Kyoto achieving no reductions in aggregate of CO2 emissions by those that signed on.

Here is what we know for certain about Cap & Trade:
1. The cost is significant for energy (fossil fuel) intensive industries. They must purchase initial allowance that are set by Congress(they know best). If their emissions exceed these allowances they will have to purchase surplus allowances from industries that have been anointed (again by Congress to get rich). This cost will be absorbed by who? _________(fill in the blank) Hint: look in the mirror
2. A "Enron" style industry of brokers and traders (ahem, think Wall Street) is spawned to deal and manage the allowances and will take their righteous cut. This too will be passed on to __________.
3. Congress will set the cap for the number of allowances available which are supposed to insure the temperature of the entire earth not only stoops rising but will actually reverse. The consensus view of all those anointed as having opinions that count is that no realistic cap will do thing to reverse the level of CO2 in the atmosphere.
4. Congress will also collect the "revenue" (err, tax) for selling these allowances.
One reason for the change, Pelosi said, was that the government needed the money it could get from the auctioning off of the emissions permits under a cap-and-trade program.
"I believe we have to because we see that as a source of revenue," the Chronicle reported her saying.

Source article in IBD
Note, the urgency is "Revenue" I thought it was to save the earth.

So, our central planners are not mathematically challenged. They know they need "Revenue" to offset their spending binge. This "Cap & Trade" is heaven sent. What better way to tax everyone without their knowing it. When the unwashed finally notice their electric bill has gone up 30% their first reaction will be to rage against the evil greedy corporations.

Not to worry, Congress will come to the rescue and raise the corporate tax rate to show us they care and are our only protection from greedy capitalist.

But this still won't be enough to pay for universal health care, rescue social security, and rapid transit so they will also raise taxes on the rich. No problem unless your rich, right? But who are the rich?

Check that mirror. Hint Anyone that earns above an arbitrary line the Central planners draw that will achieve the revenue objectives. I put this somewhere straddling Safety-Love/Belonging on Maslow's hierarchy

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