Cap and Trade; Tax; Kill

Sooooo what is Cap and Trade?

Cap and Trade:

Cap and Trade is a means to limit an industrial company's output of greenhouse gasses, like carbon DIoxide (carbon in general), by the threat of monetary penalty if these limits are breached. In order for this plan to work in the government's favor, the limits will be very stringent. A company may buy allowances (legal infringements of these limits) to prevent being fined by the EPA. Why not pay the fines? Because the fines are more expensive than the cost of the allowance. On top of it all, a fine is encumbered for every "emission tier" that is exceeded without an allowance. So if this bill does pass, as much as it hurts, it is actually more beneficial for the company to buy the allowances.

The problem lies in the fact that emission limits or "caps" are not set, but rather, adjustable. A company, in theory, may spend unlimited time trying to meet the ever changing criteria set by the EPA...which leads to the definition of Cap and Tax.

Cap and Tax:

Cap and Trade, like much of Obama's plans, favors Big Business and makes it impossible for the blue-collar community to succeed. How? Well, money of course. As stated before, a company must pay for the allowances in order to emit a certain amount carbon, or find a way to lower its emissions so they buy fewer allowances or ideally none at all (in a perfect world). Renovations like this are extremely costly to a business and, as predicted by congress, will not be the course of action taken by most businesses. Most businesses will pay THE GOVERNMENT for allowances. Large unionized companies (those with congressional oomph) will be able to afford, or find the money to renovate. In most cases, they will over-renovate. This will allow them to exceed the expectations of the EPA by emitting less carbon than their allowances permit. In order to get the most for their money, the company is warranted to sell (*trade*) their leftover allowances in a free market setting. This may sound good for small business, but small business still must pay for these allowances, except they get them cheaper.

Unfortunately, the struggling manufacturing plant on Mystery Street cannot afford to renovate. It will have to front the recurring and growing cost of the allowances. Their production is downsized, and their costs are increased. Who pays for this rise in cost? The consumer does, just like any other tax. Although it appears that the money goes to the company and not to directly to the government, the company is merely a middle man. And like a dirty shirt into the washing machine, the money is laundered from the consumer DIRECTLY TO THE GOVERNMENT. So out of desperation comes Cap and Kill...

Cap and Kill

As big business sits on a picnic blanket on that Hill in D.C., Billy Blue-Collar is waking up with a cold sweat around his neck and breathing hard from his soon-to-be-reality of a nightmare. The company he works for (the struggling manufacturing plant) cannot afford him anymore. Trying to keep personal relationships out of the equation, Billy is fired from his job. No one else is hiring, and his cash flow has ceased. Billy cannot afford the things he once could, other companies suffer from his inability to spend, and so begins the kill of the economy. This, again predicted by congress, forces people to start accepting things like nationalized healthcare and the stimulus package, making Obama look like a savior, rather than a tyrant.

But we are wise to this intent. The Obama Administration is trying to blast Cap and Trade, Obama-Care, and the Stimulus Package through Congress so that we won't even be able to comprehend what it all means. But a simple thought storm will produce what I've stated above very quickly.

Forget calling your Representative now, call your Senator, and tell them to vote NO on Cap and Trade. It is a money laundering scheme to broaden government control further than ever before. VOTE NO! And call your Representative later. Tell him to stuff it if he/she voted to pass this violation of the Constitution. Oh and in case you haven't heard...Michael Jackson died at 50 years old from a heart attack.

Make sure to change your light bulbs,

- TCM