A recent National Association of Manufacturers (NAM) report on the impact of Barbara Boxer and Bernie Sanders’ proposed carbon tax bill, which the White House is playing coy about, is fueling suspicions that Obama may be preparing to back a carbon tax as political cover for approving the Keystone XL pipeline.
This is a bill Senator Barbara Boxer (D-CA) and Senator Bernie Sanders (I-VT) introduced two days after Obama’s 2013 State of the Union address. Even after driving stakes through Cap and Trade and other such schemes, the idea of a Carbon Tax in some format has never died and Boxer and Sanders have made the “Phoenix arise” again.
The bill would add a $20-per ton tax on carbon polluters which supposedly are driving climate change. Democrats, environmentalists and progressive actors have blamed the droughts, floods, high temperatures and even Hurricane Sandy on “climate change” which we all know has been debunked.
Greg Knox, of Knox Manufacturing in Dayton Ohio had this comment:
“I just think that it’s national suicide,” said Greg Knox, CEO of Franklin-based Knox Machinery. “In talking to my customers, we’re just appalled by the fact the government would choose to consider some of this legislation in light of how many problems we have now in our economy.”
One of the states hardest hit by this would be Ohio. According to the National Association of Manufacturers:
- Natural gas cost to increase by over 40% in 2013
- Gasoline prices to increase by over 20 cents per gallon in 2013
- Electricity rates to increase an average of 13% in 2013
- 55,000-69,000 jobs impacted in 2013, 99,000-123,000 by 2023
- Coal loses 43.4-50.3% in economic output, energy-intensive manufacturing loses 2.1%, non-energy-intensive loses 0.6-1% by 2023
Where Obama stands in all this isn’t clear. Senator David Vitter (R-LA) wrote him a letter asking for his stance and apparently Jack Lew, Obama’s former Chief of Staff has said President Obama has no plans to support it, but we know how things change.
Anyone wishing to read the full study by NAM (National Association of Manufacturers) it can be found here. And they issued this salient remark: States hardest hit are listed on the link at the left and are clickable to find the study for that state.
Any revenue raised by the carbon tax would be far outweighed by the negative impact to the overall economy. A carbon tax would lead to lower real wage rates because companies would have higher costs and lower labor productivity. Over time, workers’ incomes could decline relative to baseline levels by as much as 8.5 percent. The increased costs of coal, natural gas and petroleum products due to a carbon tax would ripple through the economy and result in higher production costs and less spending on non-energy goods.
If this backdoor “Cap and Trade” scheme becomes a reality the states hardest hit would be Arkansas, Indiana, Louisiana, Montana, Ohio, South Carolina, South Dakota, Tennessee, Virginia and West Virginia.
On March 1 the State Dept, which had originally nixed Keystone, came out with a new “study” saying we aren’t so sure it’s a bad thing after all, but all conclusions are premature.
Rumors on the street are that Obama and Kerry may try a quid pro quo and trade the unions and oil companies the rights to Keystone but get their carbon tax in place to pacify the environmentalists who have gone wild over Keystone.
Let’s hope we get Keystone but not this nasty carbon tax which will destroy more jobs and raise prices for consumers.