We’ve talked about how cap and trade causes energy prices to goup. That doesn’t just hit American industry, but American consumers as well. The Congressional Budget Office (CBO) correctly notes that as these prices go up in the form of higher gasoline, heating oil, and electricity, the poor are hit hardest with what is in effect a hidden regressive tax.
President Obama promises to return revenues to vulnerable communities, families and businesses, but that leaves taxpayers at the whim of government to redistribute income rather than letting taxpayer keep their hard earned dollars.
6. It sets a dangerous precedent:
While extremist environmentalists and their liberal allies have been whining about climate change for years, most stop short of declaring cap and trade the silver-bullet solution.
Environmental groups like the Sierra Club and the National Resources Defense Council are generally supportive of the concept of cap and trade.
However, as The Heritage Foundation has pointed out, these groups have found fault with actual proposals such as America’s Climate Security Act of 2007, criticizing them for not going far enough and willing only to endorse them as “a good first step.”
As much damage as a cap and trade scheme would cause in its own right, this posture by extreme environmental groups foreshadows even more draconian regulations in our future.