Just Saying No to Cap and Tax

• Americans for Prosperity, is leading the charge against the Cap and Trade (aka Cap and Tax) system, in conjunction with the National Taxpayers Union, The Competitive Enterprise Institute, and The Institute for Liberty.  Today, I signed the pledge to oppose, “any legislation relating to climate change that includes a net increase in government revenue.”  AFP also sent out a press release after the pledge was signed.

  Waxman-Markey (the current legislation that has passed the House) imposes strict limits on the emissions of six greenhouse gases (GHGs) with the primary emphasis on carbon dioxide (CO2). The mechanism for capping these emissions requires regulated emitters to acquire federally created permits (allowances) for each ton emitted. The allowances have the economic effect of a tax—energy users will, of course, have to pay for the energy itself, and will also have to pay for the rights to use it if its production involved one of the regulated greenhouse gases. The increase in energy costs stemming from paying for these permits to emit creates correspondingly large transfers of income from private energy consumers to special interests: the federal government collects the revenues from the sale of the allowances and redistributes them to individuals and groups (businesses included) that are listed in the legislation.

  For those who may not be familiar with the Cap and Tax system, economic studies have indicated that the legislation, as passed by the House, would cause:

  - GDP reductions of $9.4 trillion between 2012 and 2035;

  - Single-year GDP losses reach $400 billion by 2025 and will ultimately exceed $700 billion;

  - Net job losses approach 1.9 million in 2012 and could approach 2.5 million by 2035. Manufacturing loses 1.4 million jobs in 2035;

  - The annual cost of emissions permits to energy users will be at least $100 billion by 2012 and could exceed $390 billion by 2035;

  - A typical family of four will pay, on average, an additional $829 each year for energy-based utility costs; and

  - Gasoline prices will rise by 58 percent ($1.38 more per gallon) and average household electric rates will increase by 90 percent.

  (source: The Heritage Foundation)

  This is unacceptable in any economic environment, let alone our current crisis.  Renewable and clean energy technology will not be created through punishing tax policy, but by American entrepreneurs who can create technology that allows consumers to receive energy cheaper, cleaner, and faster – and allow those innovators to make a profit.  The great leaps of technological advancement, from the automobile, to the airplane, to the internet, were not created through tax punishments or the intervention of Congress.  Clean technology and clean energy are no different.  This Cap and Trade system is a payoff to special interests and a job killer and I will never support it.

  For that reason, AFP sent out the following press release today:

  Americans for Prosperity Applauds U.S. Congressional Candidate Dennis Ross
  -Signs No Climate Tax Pledge-
  WASHINGTON-The free-market grassroots group Americans for Prosperity (AFP) today applauded U.S. Congressional Candidate Dennis Ross (12th District) for signing the group’s “No Climate Tax Pledge.” By doing so, Ross joins over 235 lawmakers and candidates on the federal, state and local levels pledging to “oppose legislation relating to climate change that includes a net increase in government revenue.”

  “The one thing elected officials should be able to agree on is that global warming shouldn’t be used as an excuse to hike taxes on citizens and businesses,” said AFP Policy Director Phil Kerpen.  “We encourage all of Florida’s elected officials and candidates for elected office to sign the pledge.”

  Other Florida signers include: U.S. Representatives C.W. Bill Young, Bill Posey and Jeff Miller.

  Cap-and-trade took its first step toward enactment when the U.S. House narrowly passed the Waxman-Markey energy bill, which escaped the lower chamber by a scant seven votes despite significant bipartisan opposition.  However, key Democratic senators have expressed opposition to attempting to pass a cap-and-trade this year.  President Obama has made no secret of his support for the bill, which would be the largest tax increase in American history.  The non-partisan Congressional Budget Office has scored the plan as an $846 billion increase in federal revenue, a burden that will be borne by taxpayers and consumers for years to come.

  “Using the guise of climate change to transfer dollars from hard-working citizens to bureaucratic big government is unacceptable,” said Kerpen. “Regardless of their stance on global warming, this should be common ground for all of our elected officials at all levels of government.”

  The pledge is available online at http://www.NoClimateTax.com.  AFP does not endorse candidates.  All elected officials and candidates are encouraged to sign the pledge and go on the record in opposition to using the climate change issue to increase taxes and grow the size of government.

  Americans for Prosperity (AFP) is a nationwide organization of citizen leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits. AFP has more than 700,000 members, including members in all 50 states, and 25 state chapters. For more information, visit http://www.americansforprosperity.org

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