Tuesday, March 17, 2009

Can we learn from the mistakes of others?


Push and shove, pull and poke, up or down…will anyone get it right? Our Congressional leaders are in disagreement about CO2 legislation – and what they decide could be the straw that breaks the camel’s back when it comes to regulating carbon dioxide.

In an environment screaming recession, people won’t stand for the word “tax” especially an energy tax, as part of the solution to reduce CO2. So hide it behind the words “Cap and Trade.”

A cap-and-trade plan is a tax in disguise and thankfully a number of Democrats and Republicans are starting to see that this proposal has serious defects. Rural utility systems have tried to point out these flaws for the past year. (See Glenn English’s dialogue with America below.) Using a cap-and-trade program is inefficient and costly – and worse yet – unpredictable.

I think the hardest part is that the people who will make these decisions truly believe they have the facts in front of them. They feel like they understand the problem. What I don’t think they understand is how far reaching a cap-and-trade program can be. They willingly admit “Oh, we know it will raise electric rates a little.” But folks, it won’t be a little. It will be a lot! Your electric rates could easily double!

Europe enacted a cap and trade program years ago. It isn’t working! Read this article: http://tinyurl.com/bb3exl

Now add another small fact worth considering. Let’s say…for the sake of agreement, all Americans get in this boat and chant the mantra “Save our Planet” and find a way to reduce CO2 in a cost effective, balanced approach. China has decided it is exempt from reducing C02. They say they should not have to reduce emissions caused by goods manufactured to meet demand elsewhere (from The Washington Post-March 17 2009). Did we gain a thing?

America responded (loudly) to President Obama’s promise that if you make $250,000 or less, you will not see a tax increase…..except he left off “unless you use electricity.” We can’t afford to get this wrong.

“Lawmakers may say they have plans to rebate some people so that everyone does not suffer, but it is not possible to craft a cap and trade plan that is perfectly offset by rebates. Just because a politician promotes a plan that is “budget neutral” for government does not mean it is “budget neutral” for American families. When politicians redistribute money, there will be winners and losers. The winners will be the politically well-connected groups and the populace as a whole will lose.” (Paragraph source: Institute For Energy Research)

Gwen Kautz, Dawson Public Power District

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