1086 Greenscam (Nat'l Taxpayer Union)

National Taxpayer Union(ntu.org)

The American Clean Energy and Security Act of 2009 (ACESA), also called the Waxman-Markey cap-and-trade bill (H.R. 2454), is one of the latest pieces of hasty legislation from Congress that will result in a hidden tax on numerous forms of energy, including gasoline, diesel, jet fuel and home heating oil. This flawed cap-and-trade bill will hurt small businesses, farmers, truckers, and families – in the process destroying jobs, and damaging our already troubled economy.

Who Will It Hurt?

While supporters of cap-and-trade tout the bill as a step towards cutting carbon dioxide emissions from our atmosphere, everyone – from farmers to truckers to airline pilots to small businesses – will end up footing the bill for this poorly designed legislation. Prices for gasoline, diesel, airline fuel, and home heating oil will increase – even though the Government's own data shows that this hidden tax will produce almost no reduction in CO2 emissions from the transportation sector. Farmers, truckers, delivery services, small businesses, freight haulers, airlines, railroads, shipping, and others would face higher fuel costs because of this hidden tax, which could limit an economic recovery that just might be on the horizon.

Nearly everyone agrees that the Waxman-Markey cap-and-trade bill will cost American jobs. According to the non-partisan Brookings Institution, "Despite the promise of green jobs, ACESA would, if enacted, inevitably depress total employment from baseline levels. The bill would divert resources now used to produce additional goods and services into the work of obtaining energy from sources that are more costly than fossil fuels."

Documents recently obtained from the Treasury Department through a Freedom of Information Act request revealed that the Obama Administration itself is envisioning a huge cost to taxpayers and the economy from cap-and-trade. One memo concluded that "Given the Administration's proposal to auction all emission allowances, a cap-and-trade program could generate federal receipts on the order of $100 to $200 billion annually." That's equivalent to as much as $1,800 per household per year, or a 15 percent across-the-board increase in the personal income tax. Some estimates run a $1,000 higher, or even more.

But this is only the tip of the iceberg. Beyond revenues for the federal government, the regulatory costs that cap-and-trade would inflict on the economy would be huge. Interestingly, the public version of the memo keeps secret the Treasury's opinion on this aspect by noting that cap-and trade "will raise energy prices and impose annual costs on the order of ..." [text redacted]. That's right ... the estimate from the Treasury was blacked out in the memo released under the Freedom of Information Act. Other sources say that the increase in energy prices could double the $1,800 figure.

Although the Waxman-Markey bill's specific provisions may be different from the Treasury's assumptions, we now know that whatever die-hard cap-and-traders eventually try to pass through Congress will cost us plenty.

Then Why Do It?

Congressional backers of the Waxman-Markey bill say that they are helping the environment by curbing U.S. carbon emissions, and therefore stemming the tide of global warming. This may sound well and good, but upon closer examination we can see that the Waxman-Markey cap-and-trade bill actually does very little to cut greenhouse gas emissions and help fight global warming.

Ignoring the fact that China and India, two colossal emitters of greenhouse gases, have refused to regulate their own emissions, the federally-run Environmental Protection Agency admits that certain measures of this bill, such as placing a hidden tax on transportation fuels, are unlikely to accomplish much in the way of cutting the release of CO2.

What Can We Do About It?

Plain and simple, the Waxman-Markey bill is the wrong way to address this country's emissions issues. Furthermore, the legislation's hidden tax on transportation fuels that families, farmers, truckers and small businesses rely on everyday is damaging to this economy. When businesses are fighting to remain solvent, shouldn't Congress avoid an oppressive, overreaching bill such as this?

We must protect the nation's taxpayers, consumers, and businesses from the irreparable harm that Waxman-Markey would cause. Here's how you can help:

1) Contact your Senators and let them know that the Waxman-Markey bill is bad for America. To do so, click here.

2) Then, be sure to spread the word to your friends, neighbors, and relatives about the dangerous Waxman-Markey bill. To send this message to others.