| 'Cap-and-Trade' May Cost Texas Families an Added $1,200 per Year |
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| by Tom McGregor | Wed, Nov 4, 2009, 07:43 PM |
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Some are forecasting economic collapse, while others predict a boost of growth and green jobs.
"Still," the New York Times reports that, "one particular granular study by the Texas Comptroller of Public Accounts, released last March, has stirred a good deal of debate in Texas." On the comptroller's website, a fact sheet based on the March study, forecasts the impact of 'cap-and-trade' on Texas starting in 2012 and provides detailed estimates of the impact on individual Texas households. The fact sheet says, "if 'cap-and-trade' started tomorrow, the typical Texas family could expect to spend up to $1,136 more total on goods and services a year." According to the NY Times, "the specificity of household cost predictions is impressive: 'legal and financial services' would cost consumers and added $72, the study says. 'Clothes, shoes and accessories' would run an extra $57 as a result of 'cap-and-trade.'" Texas politicians, which include Gov. Rick Perry and Commissioner of Agriculuture Todd Staples, grabbed the report's projections to castigate 'cap-and-trade' legislation as a haunting economic disaster for Texas families. Gov. Perry said in a speech in Austin on Sept. 22, that "according to the comptroller, this legislation would immediately increase the cost of household goods for Texas families an additional $1,200 per year." Last month, the governor repeated those assertions before the Interstate Oil and Gas Compact Commision. To read the entire article from the New York Times, link here: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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Comments (5)
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written by John Weekley , November 05, 2009 Tom, I believe Cap and Trade would cost families in Texas and elsewhere in the country much more than $1,200 per year. Cap and Trade would add a cost to a product or service at virtually every step of production and/or delivery. It would cost millions of jobs, would dramatically reduce our GDP. would chill spending by families and businesses, would cause higher taxation by state and local governments, and would create a cycle of higher prices and higher taxes that could explode into Hyper Inflation. Government simply cannot demand a series of additive taxes on a single product or service, and expect anything but fewer goods and services to be available. It is writ: If you want less of something, tax it. If you want more of something, remove the taxes on it.
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written by John Weekley , November 05, 2009 What the White House won't tell you, what the CBO won't score, what college economists won't cover because of fear of liberal backlash, are the INDIRECT COSTS AND PENALTIES of Cap and Trade. America came into prominence in the world, and generated its own wealth and prosperity, largely from cheap energy and from cheap labor - both forms of 'doing work' in the big picture. Cheap labor, always relative to other incomes, is becoming a thing of the past in America. So technology and cheap energy, both bills in the same purse, have carried the day, virtually starting when Henry Ford developed assembly lines and carried processed work to people instead of people to work. (Labor was cheap then, but has become more and more expensive ever since the rise of unions.) Cap and Trade will utterly destroy the critical asset (and input to production of goods and services) of relatively cheap and available energy. The negative consequences to businesses and families will go well beyond the estimates of DIRECT impact just being calculated in the last few weeks. The indirect costs, just as real, are every bit as disastrous. TAXES ----- More expensive energy will raise the cost of everything for businesses and homeowners, including their taxes. Because government must pay more for goods and services, those costs will be passed along to businesses and homeowners as well as those who purchase items covered by sales taxes. As revenues to government go down because of reduced property values and less in sales taxes because of fewer purchases, services will contract and taxes will expand in a continuous cycle. Property Values --------------- Less money available for lending because of contracted credit, fewer jobs, less money available from family budgets, and other market forces will reduce the value of your property, but your property taxes will go up because government needs more in taxes to operate. Reduced Living Standards ------------------------ America has led the world in living standards. Even those below the poverty line generally enjoy a higher standard of living than most world citizens. Cap and Trade will reduce living standards by dramatically raising the cost of energy, raising taxes, reducing wealth and prosperity, and making the costs of goods and services ever higher. Increased Medical Costs ----------------------- There are direct correlations between energy and product costs, and wellness. As well, energy costs are a substantial component of medical costs, directly and indirectly. With less available money for families and businesses to spend on wellness investments and medical costs, general health will go down, thereby increasing costs through increased demand. There are many other indirect penalties associated with Cap and Trade, but these are some good examples for stimulating calculating increased costs in other areas.
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written by Ken Dickson , November 05, 2009 This is the largest effort to redistribute wealth this country has ever known!...or the world for that matter! Why Obama & his group of Socialists were elected was an effort by the "non-productives to take away from the productives! .. CHANGE? That crowd has been successful!...Get ready for more that will put them on the streets as well!
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written by John Weekley , November 05, 2009 Contraction in Travel --------------------- Cap and Trade will increase ALL costs associated with travel, but particularly the operating costs and fuel costs for airlines. Americans will travel less for business, and discretionary travel will contract considerably. This reduces business "reach" associated with operations, sales, and marketing, but will also reduce person-to-person collaboration and long-distance work group face time. Convention and Tourism Contractions ------------------------- Among the victims of Cap and Trade will be the hotel, tourism, and convention industries. Each depends on energy to exist, so their costs will go up, and their prices will necessarily increase as they pass along costs to customers. However, these costs, and the related increases in travel costs, will render many convention and destination business operations unable to survive, and will create additional joblessness in that industry as well as the corresponding loss of jobs and livelihoods in tourist destinations. THE DIFFERENCES BETWEEN CAP AND TRADE IMPACT AND RECESSION IMPACT ========================= The Administration and some in Congress present Cap and Trade as a necessary inconvenience to help the planet. That highly controversial argument can be addressed elsewhere. But, Cap and Trade is anything but inconvenient, and is nothing like a temporary recession waiting for adjustments. In recession, the economy contracts. The impact on most businesses is less business, and therefore layoffs to manage the budget. Homeowners cut back until confidence in the economy returns. But, for a business, Cap and Trade will lower revenues while increases product/services costs, all operating costs, and larger and larger contributions to taxes, leaving less money for personnel or expansion. Homeowners will be hit with higher taxes, less available credit, dropping property values and wealth, higher costs for everything, but fewer opportunities for advancements, second jobs, or starting cottage businesses. If you are a small business with a 6% profit margin, you could find yourself bankrupted by the combination of a loss in business and customers, but increases in costs and taxes. A margin of 6% can disappear quickly. Cap and Trade is not only a useless idea, but a terrible punishment for business, homeowners, and the not-for-profit sector (which hasn't even been addressed). Write comment
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Since the Waxman-Markley climate and energy bill emerged in a draft form early this year, a wide array of reports from think tanks, non-profits, universities and consultants have emerged - all trying to project its impact on employment, electricity prices and gross domestic product.
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