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A note from Jack on Cap and Tax

Washington, Jun 25 -

Dear Friends, In less than 24 hours, Speaker Pelosi’s plan to implement a national energy tax is set to be on the House floor. The plan would place a devastating tax on all Americans known as “Cap and Tax” with the intent to reduce America’s carbon emission levels in 2050 to the level emitted in 1910.  That’s no easy task when you consider that the population of the United States in 1910 was just 92 million people compared to an estimated 420 million in 2050.  However, I believe it’s a laudable goal but one that should be achieved through tax incentives and alternative energy research. Consider that the only nations in the world that currently emit at that level are Belize, Jordan Haiti and Somalia.  In order to reach that level, emissions from the transportation sector would have to drop to zero, as would those from all electricity generation, and we would still need to reduce all other sources of greenhouse gas emissions by 50 percent.  Theoretically, if all the countries did so it would work but without them following suit, large energy-consuming industries will simply relocate to countries without these same restrictions. The cost for such a bill is outrageous.  After spending billions since President Obama’s inauguration, the plan proposed by House Democrats would cost $864 billion according to the non-partisan Congressional Budget Office.  Overall, it will increase the federal debt by 26% which totals $29,150 per person.  President Obama’s own Budget Director, Peter Orzag, himself admits that the cost will be passed along to the consumer in the form of higher energy prices and that, “price increases would be essential to the success,” of the program.  President Obama himself said that, “electricity prices would necessarily skyrocket.” Cap and Tax will essentially slap working families with a new tax each time they fill up their gas tank or flip on a light switch.  Utility bills are expected to go up 40-50% and fuel costs would go up 77 cents per gallon for gasoline and 88 cents per gallon for diesel.  The Heritage Foundation estimates the total cost on average for families at $3,000 per year. Not only will the new tax hurt families already struggling during these tough economic times, it will drive businesses away from America and into countries with less stringent environmental regulations. As these businesses relocate or new ones sprout up, they will go to nations like China and India which have much more lax emissions standards than those already in place here in the United States.  Annual Chinese emissions growth alone is already equal to the total yearly output of Germany – can you imagine where it will go as businesses are driven from America? I plan to vote against this legislation but the fight is not over. Click here to take my survey so I know where you stand and forward this message to a friend asking them to do the same.  By increasing knowledge about this bill, we can turn the tide. Sincerely, Jack Kingston P.S. To read one of my recent press releases which discusses Cap and Tax's impact on Agriculture, click here. If you would like to sign up to recieve regular email updates from Jack, please click here.