Cap and Trade
What is Cap and Trade?
See Rep. Burton’s new web video about Cap and Trade here!
Cap and Trade [H.R. 2454], is the Democrat proposal that would set a cap, or limit, on the total amount of greenhouse gasses that businesses in the United States can emit. In order for a business to emit greenhouse gasses, they must have a “ration coupon” for each ton emitted. Therefore, as entire industries have to spend money to purchase the mandated ration coupons – which means pay a huge tax – they will have to increase the cost of the goods and services they produce. This cost will ultimately be paid by you, the consumer, as your gas and electricity bills begin to rise.
Heritage Foundation analysis of the economic impact of Cap-and-Trade projects that by 2035 the bill will:
• Reduce aggregate gross domestic product (GDP) by $7.4 trillion,
• Destroy 844,000 jobs on average, with peak years seeing unemployment rise by over 1,900,000 jobs,
• Raise electricity rates 90 percent after adjusting for inflation,
• Raise inflation-adjusted gasoline prices by 74 percent,
• Raise residential natural gas prices by 55 percent,
• Increase inflation-adjusted federal debt by 29 percent, or $33,400 additional federal debt per person, again after adjusting for inflation
What is the Republican Alternative?
Rep. Burton has cosponsored the Republican Alternative to Cap and Trade, called the American Energy Act. This legislation would allow for 100 new nuclear power plants in the next 20 years, open the outer continental shelf and the Arctic National Wildlife Refuge in Alaska for more oil and gas exploration, investment into the various renewable energy technologies, and best of all—no mandates on the private sector, and no new financial burdens to your family or America. This legislation provides a path to energy independence, and lower energy costs for everyone in the future.
You can read the entire bill or short summaries here:
http://www.gop.gov/general/09/06/10/republicans-introduce-the-american-energy
Here is a short summary in the New York Times:
http://www.gop.gov/wtas/09/06/10/new-york-times-house-republicans
What has Rep. Burton been doing to fight Cap and Trade?
“Burton, Pence lead fight over cap and trade” (Shelbyville News)
http://www.gop.gov/general/09/05/26/burton-pence-lead-fight
Hoosiers Lead Fight Against Cap and Trade (Hoosier Ag Today)
Hoosier GOP Sound Alarm Over Cap and Trade (Howey Politics Indiana)
Photos: The Indianapolis Energy Summit
http://www.gop.gov/general/09/05/28/photos-energy-summits-in-pittsburgh
Video: Watch the entire Indianapolis Energy Summit
http://www.gop.gov/media/features/09/06/01/american-energy-soultions-group-summit
Video: Rep. Burton’s remarks at the Indianapolis Energy Summit
http://www.youtube.com/watch?v=vCTQbmRhsBs
More of Rep. Burton’s concerns with Cap-and-Trade:
• This is a tax that the Democrats will increase incrementally, and as they do so, it will create a slow bleed on our economy that will cost trillions of dollars and millions of jobs over time.
• By waving the environmentally friendly banner as a headline, this legislation is a genuine Trojan horse filled with taxes, and an attack on American consumers and our various industries.
• One estimate for a similar proposal found that families would pay between $3,000 and $4,000 a year in extra energy costs.
• President Obama admitted that his energy plan would cause energy prices to “necessarily skyrocket,” and that the cost will be passed onto consumers.
• Various estimates suggest anywhere between 1.8 and 7 million American jobs could be
lost.
• Manufacturing jobs will relocate to countries with less stringent environmental
regulations, like China and India, inflicting greater harm on American families and small
businesses, while doing even greater damage to the environment.
• Families in states, like Indiana, that rely heavily on carbon-based energy to heat their homes andpower businesses will be especially hurt by the Democrats’ energy plan.
According to the non-partisan Congressional Budget Office, the Democrat Cap and Trade legislation does the following:
• Imposes $846 billion in new national energy taxes – $200 billion more than the President’s budget called for.
• Eligibility for “energy stamps” to hold Americans harmless from higher fuel and utility bills as a result of these new taxes completely phases out for singles at $23,000 and a family of four at $42,000.
• Despite facing higher energy prices, most in the middle class would receive no relief.
• Creates several new federal programs and government agencies. The new administrative costs to federal agencies would average $800 million per year over the first 10 years.
