The Sale of Cap'n Tax Indulgences for Climate Sins

The Waxman-Markey Cap & Trade legislation revives the concept of "indulgences" -- little permissions to engage in environmental CO2 sin -- only they are called offsets.

The government becomes the environmental priesthood, granting these CO2 indulgences so that you can "offset" your carbon footprint.

Big business has already lobbied Congress for a good portion of these, and the farm lobby got in there too and made sure that big outfits like Cargill and Monsanto would be protected with indulgences, er, offsets.

Sprueill and Williamson explain

No.5 -- The Selling of CO2 Indulgences

In fact, nearly all of Waxman-Markey’s carbon-reduction targets can be met with offsets alone through 2050, meaning decades before any actual reduction of greenhouse gases is required. That means huge new expenses for small businesses and consumers in return for basically zero environmental improvement.

And how does one earn an offset to sell? Get a farm and cash in through such methods as, and we quote, “improved manure management,” “reduced tillage/no-tillage,” or “afforestation of marginal farmlands.” Translation: Plant some trees around the house and claim some extra credits on the land the government may already be paying you not to farm.

And do a better job of handling your B.S. — but you’ll never do as good a job on that one as the authors of Waxman-Markey.

Zero environmental improvement through the year 2050 A.D.

But this is a crisis, right? Such an impending disaster that Nancy Pelosi had to force a vote without a reading of the vile details of the bill.

B---S--- is absolutely how this smells.

Cap'n Tax -- You Pay for Saving Rain Forests

We continue to look at Sprueill and Williamson's 50 most egregious components of the Waxman-Markey "Cap & Tax" climate change bill passed by the House (and soon to be considered by the U.S. Senate).

At its heart this is "wealth transfer" legislation. It will take money from the middle class and give it to big corporations (through government-issued carbon credits and subsidies) and the very poor (through government subsidies).

It will also transfer wealth from the United States to well-connected individuals, businesses and officials in foreign lands, as witnessed by what happens to some of the actual revenue generated by Waxman-Markey.

No.4 -- Money to Save or Plant Trees in Foreign Lands

To the extent that the allowances actually generate government revenue, that money is going to be used for fraud-inviting projects of dubious environmental or economic value. Example: Some allowance money will be used to “build capacity to reduce deforestation in developing countries experiencing deforestation, including preparing developing countries to participate in international markets for international offset credits for reduced emissions from deforestation.” What are the chances of that being abused?

This violates just about every principle of subsidiarity one could imagine. Why should Americans be taxed to pay people in foreign countries to stop cutting down their trees, or for planting new ones? They should do this on their own initiative, not because rich outsiders (and we are rich by comparison) are willing to pay them.

The potential for fraud and abuse is sky high. Who's going to be the watchmen for these projects, and who's going to watch the watchmen? It ain't you or me, babe.

This is one of those think locally, act globally inversions of logic that the Enviro-Left loves.

You get to pay for it.

Everything You Never Wanted to Know About Waxman-Markey

How bad is Waxman-Markey, the carbon cap and trade legislation passed by the House?

Stephen Spruiell & Kevin Williamson of National Review put it this way. The bill

represents a worse abuse of the public trust and purse than the stimulus and the bailouts put together. Waxman-Markey creates a permanent new regime in which environmental romanticism and corporate welfare are mixed together to form political poison. From comic bureaucratic power grabs (check out the section of the bill on candelabras) to the creation of new welfare programs for Democratic constituencies to, above all, massive giveaways for every financial, industrial, and political lobby imaginable, this bill would permanently deform American politics and economic life.

The House of Representatives, famously, did not read this bill before passing it, which is testament to either Nancy Pelosi’s managerial incompetency or her political wile, or possibly both. If you take the time to read the legislation, you’ll discover four major themes: special-interest giveaways, regulatory mandates unrelated to climate change, fanciful technological programs worthy of The Jetsons, and assorted left-wing wish fulfillment.

While admitting that they cannot devote the time to document every one of its potential abuses, they have put together a list of its 50 most outrageous features. I'd like to think it's a "must read" but since I doubt if very many will, I'm going to dwell on a few items on their list over the next couple of days.

No. 1 -- Free Money for Business; Higher Prices for You

The big doozy: Eighty-five percent of the carbon permits will not be sold at auction — they will be given away to utility companies, petroleum interests, refineries, and a coterie of politically connected businesses. If you’re wondering why Big Business supports cap-and-trade, that’s why. Free money for business, but higher energy prices for you.

No. 2 -- A Windfall for Goldman Sachs

The sale of carbon permits will enrich the Wall Street investment bankers whose money put Obama in the White House. Top of the list: Goldman Sachs, which is invested in carbon-offset development and carbon permissions. CNN reports:

Less than two weeks after the investment bank announced it would be laying off 10 percent of its staff, ***Goldman Sachs confirmed that it has taken a minority stake in Utah-based carbon offset project developer Blue Source LLC. . . . “Interest in the pre-compliance carbon market in the U.S. is growing rapidly,” said Leslie Biddle, Head of Commodity Sales at Goldman, “and we are excited to be able to offer our clients immediate access to a diverse selection of emission reductions to manage their carbon risk.”

No. 3 -- Creation of a New Corporate Interest Group, USCAP

With its rich menu of corporate subsidies and special set-asides for politically connected industries, Waxman-Markey has inspired a new corporate interest group, USCAP, the United States Climate Action Partnership — the group largely responsible for the fact that carbon permits are being given away like candy at Christmas rather than auctioned. And who is lined up to receive a piece of the massive wealth transfer that Waxman-Markey will mandate? Canada Free Press lists:

Alcoa, American International Group (AIG) which withdrew after accepting government bailout money, Boston Scientific Corporation, BP America Inc., Caterpillar Inc., Chrysler LLC (which continues to lobby with taxpayer dollars), ConocoPhillips, Deere & Company, The Dow Chemical Company, Duke Energy, DuPont, Environmental Defense, Exelon Corporation, Ford Motor Company, FPL Group, Inc., General Electric, General Motors Corp. (now owned by the Obama administration), Johnson & Johnson, Marsh, Inc., National Wildlife Federation, Natural Resources Defense Council, The Nature Conservancy, NRG Energy, Inc., Pepsico, Pew Center on Global Climate Change, PG&E Corporation, PNM Resources, Rio Tinto, Shell, Siemens Corporation, World Resources Institute, Xerox Corporation.

One major group of recipients of the free money being given to industry in the form of carbon permits are the electric utilities, represented in Washington by the Edison Electric Institute. Along with the coal and steel businesses, the utilities are positioned to receive a huge portion of the carbon permits — some of which will be disguised as measures for consumers — and have become one of the nation’s highest-spending lobbies, working to ensure that their interests are served by cap-and-trade.

If you read the list carefully, you will realize that you have lefty groups side-by-side with big corporate fat cats, all licking their chops at the prospect of sharing your tax dollars from the federal trough. This is called socialism, in case you were wondering.

Piggishness, indeed!

Tomorrow: Nos. 4 through 6.