|
| |||
 |
|||
Rep. Pence Op-Ed in the Chicago Tribune: Energy Tax 'compromise' Isn't |
|||
By Mike Pence
May 24, 2009
After weeks of political horse-trading in Washington between senior House Democrats and their nervous rank-and-file members over climate change legislation, a compromise is making its way through Congress. But all the window dressing that this "compromise" has prompted does not change the fact that it is an economic declaration of war on America's heartland. Citizens nationwide should beware because if Washington's latest energy charade becomes law, it will have a devastating impact on the price at the pump and utility bills.
For weeks, Democrats from states like Indiana and Ohio pleaded with Henry Waxman (D-Calif.), chairman of the House Energy and Commerce Committee, to make substantial changes to the proposed cap-and-tax legislation. The cautious moderates represent states that rely heavily on carbon-based energy to heat homes and power businesses. And they understand that this legislation, which dramatically hinders the use of coal, will devastate their state's families, small businesses and family farms.
Barack Obama said it best during the presidential campaign when he declared that under his energy plan, energy "prices would necessarily skyrocket." But you don't have to take just President Obama's word for it. Rep. John Dingell (D-Mich.), former chairman of the Energy and Commerce Committee, recently proclaimed that "nobody in this country realizes that cap and trade is a tax, and it's a great big one."
To soften the blow, heartland Democrats recommended a number of changes to this misguided bill. The changes include a textbook-size list of technical jargon, such as "free" allowance allocations to the utility sector, performance standards for new coal plants and provisions to provide free allowances to energy intensive industrial emitters. Regardless of the technicalities, these edits were designed to lessen the burden that would be felt by their already struggling state economies. A closer look reveals their requests have not been met and the bill is still not worthy of Midwestern support.
For example, when it comes to the required reduction in the level of carbon dioxide emissions, Waxman originally mandated a 20 percent reduction below 2005 levels in just 10 years. Heartland Democrats proposed a 6 percent reduction, also by 2020. So, where did this grand compromise arrive at for a solution? Seventeen percent. This, despite the fact that many of the new technologies that Waxman relies upon to reach his target, such as carbon capture and sequestration technology are still untested, making these emission reduction targets nearly impossible.
The trade-off for such stringent mandates was certain exemptions and relief to local companies that service electric utilities -- an implicit acknowledgment of the high cost this bill passes on to consumers in the form of high energy prices.
Even more devastating than what the "compromise" seeks to address is what it has left unaddressed. The Democrats' backroom deal does nothing to prevent the loss of American jobs or the enormous cost added to the budgets of families and small businesses.
Some estimates suggest anywhere between 1.7 million and 7 million jobs could be lost under the Democrats' energy tax plan. Manufacturing plants, and the jobs they create, will just relocate to foreign countries with less stringent environmental regulations and transport pollution to other parts of the world. Washington will inflict a lot of pain on American families for a policy that won't achieve its ultimate goal of reducing carbon emissions.
The compromise also fails to address the lack of participation from other countries, such as India and China. Global participation is critical to reducing carbon emissions, yet Democrats have completely ignored this serious international concern.
The numbers are devastating for a country already hurting due to record job loss and will have real consequences that will be felt by families already struggling to make ends meet. One estimate suggests that this national energy tax will cost the average household $3,100 a year in higher energy prices. For $3,100, a farmer can fill his tractor with gas more than 30 times, or a family of four can pay the grocery bill for five months. Instead, a family's limited financial resources will be forced to pay higher energy bills.
Senior Democrats doled out just enough crumbs to their shaky colleagues to ensure that this national energy tax makes its way through Congress. Sadly, this compromise is nothing better than political cover for a Democrat-controlled Congress that wants to tax energy, control the market and restrict freedom. Enactment of this legislation will be devastating to our economy, while exporting American jobs overseas.
It is a policy this nation cannot afford.
Rep. Mike Pence (R-Ind.) is chairman of the House Republican Conference and chairman of House Energy Solutions Working Group.
Note: To view this article, click here.