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GOPers Re-Name Climate Change Bill -- Now It's An 'Energy Tax'!

TPMDC has reported on how indignant Republicans are that Democrats are considering filibuster-proofing the coming climate change bill by making it part of the budget -- remember, 25 GOPers signed a letter nixing that option last week -- but the GOPers on the Senate environment committee are taking it to a new level.

In a letter to their fellow senators today, the environment panel's Republicans throw every rhetorical weapon in their arsenal at the Obama administration for putting revenues from carbon regulation in its budget. What they're afraid of is what the energy industry has called the "nuclear option," a budget item for climate change that would fast-track the bill to passage.

And to help strangle that option, the Republicans have renamed cap-and-trade emissions limits. They're now being christened an "energy tax," which creates a nice opening to slam Democrats as tax-hikers. Read the full letter after the jump, and fear the ominous "energy tax" ...

Dear Colleague:

The President's 2010 Budget proposal contains a risky, ill defined new energy tax that has the potential to continue the economic recession for many years to come. We are writing this letter to alert you to this situation and ask that you join us in a budget resolution amendment to strike and such provision.

Specifically, the President's 2010 Budget proposal asks to collect $646 billion dollars in new "Climate Revenues" from the American people. The government will collect these new revenues through a cap and trade scheme in which " allowances" are sold to the highest bidder. The government won't tax consumers directly, but it will impose new costs on energy producers and users who will in turn pass those higher costs on to consumers, which will result in higher electricity bills, gasoline prices, grocery bills, and anything else made from conventional energy sources. In short, consumers will feel as if they are paying a new tax on energy.

The stated price tag for this new energy tax is $646 billion, yet recent news reports indicate that administration officials are privately admitting their program will actually generate between "two and three times" this amount of revenue, or between $1.3 trillion and $1.9 trillion. However, these numbers represent only the cost from 2012 through 2019. The budget summary describes the energy tax extending at least through 2050. At the 2012 through 2019 average annual rate, families and workers would face through 2050 between $6.3 trillion and $9.3 trillion in higher energy taxes.

On the Environment and Public Works (EPW) Committee, we have had experience with these types of proposals. We, and the full Senate, debated a proposal by Senators Boxer, Lieberman and Warner that the sponsors themselves indicated would generate $6.7 trillion from consumers. As you may recall, the Senate defeated this proposal, in part because the U.S. Environmental Protection Agency estimated that by 2050 it would annually cost the average family $4,377 and raise gasoline prices $1.40 per gallon. Experts estimated it would kill up to 4 million jobs by 2030. As you can see, a $4,377 per family total cost or a lost job would greatly outweigh any $800 per family payroll tax break offered by the administration.

The budget resolution is not the right place for the careful bipartisan dialogue we need to get these issues straight, or to account fully for the legitimate concerns of energy consumers, economists, and industry. While the budget resolution the Senate will debate is not yet available, we will offer an amendment to strip any climate revenue provision it contains. We urge you to be ready to join our efforts to resist the erosion of proper democratic principles.


29 Comments

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We give up on socialized health care to go with a public health insurer option plan. They attack the public health insurer option and claim it's socialized health care.

We give up the carbon tax to go with cap and trade. They attack the cap and trade plan and claim it's a carbon tax.

Personally, although I like Obama's cap+trade+auctions system on its own merits, I don't see what would be so bad about an actual carbon-based energy tax. Chris Dodd specifically wanted such a thing.

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Cap-and-trade is a tax -- no question about it. The higher prices that result from cap-and-trade policies is a form of taxing. I happen to support it, but acknowledge it's a tax.

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There are forms of cap and trade that aren't like a tax (like where the licenses are handed out free) but in the case of Obama's plan, yeah, I think you're right.

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Renaming the GOP. They're against cap-and-trade. They're against a carbon tax. Meet the GWP--the Global Warming Party.

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How about a little semantic Judo? Take any GOP legislation, including amendments, and just call it something like "the ignorance tax" or "the stupidity tax."

Use "Limbaugh" as an adjective, as in "This is just Limbaugh Legislation."

Call other amendments and bills "Legislation to nowhere, like the GOP bridge in Alaska ..."

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Hey, this is fine with me. They want to call it a tax, let's give them a straight-ahead carbon tax, which is a better, more effective, more equitable solution than cap-and-trade anyway.

The bottom line is that according to mainstream climate scientists, we have no more than five years or so within which to stop the growth of CO2 emissions (which has been accelerating for the last decade, far exceeding the worst-case scenarios of the IPCC) and then begin rapid reductions in emissions, if we are to have any hope of averting the most catastrophic consequences of anthropogenic global warming.

And we will need to continue steep reductions until CO2 emissions -- and thus, necessarily, all burning of fossil fuels -- have been completely eliminated by 2030 if not sooner.

Time is running out, and meanwhile the Republicans and so-called "moderate" corporate-shill Democrats are saying that the profits of ExxonMobil are more important than the survival of human civilization, and indeed the survival of the human species. That's what is at stake.

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Gee, I'm shocked, shocked I tell you. Everything is a tax according to the gop. The issue is to the vast majority of americans the tax is like ten cents, big deal. Ohh that tax boogeyman. The only people that that really applies to is the top 1% and the rest of the sheep buy the bs. Pathetic.

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Yeah, the party of propaganda is at it again.

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Thought the only solutions the GOP had was to tax middle americans and spend for the corporations! which put money in both their pockets!..That is all they did for the last 14 of 16 years while they were in charge of Congress!

As to their spewing ---WHO IS LISTENING__THEIR RATINGS ARE DROPPING LIKE A STONE!

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How is it an energy tax if it won't affect solar or wind power? Oh, wait, the GOP doesn't consider anything that's not fossil fuel as "energy." Plus, the Obama plan will return 80% of the revenue raised back to taxpayers as a tax cut for middle class families. But not a word of that in this letter.

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Hey, why stop there? It's a tax on dead dinosaurs! It's Death Tax II!

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Actually oil's dead algae. So maybe it's the "Dead Slime Tax?"

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Just as well Republicans don't believe in dinosaurs. Which is doubly ironic, of course.

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Tat's true.

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Republicans merely want us to continue funding terrorist-supporting fossil fuel producers.

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Perhaps we should re-brand the Republicans. Any (FCC-compliant) suggestions?

How about "Republicants"

(I especially like this for the near-homophone with the Blade Runner robots)

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This comes as no surprise, sadly, as the exact same tactic was used successfully in Canada in the 2008 general election.

Beware the carbon tax - I believe they went on to label it the "tax on everything." It's powerful stuff, sadly.

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I don't understand why more Democrats don't attack this kind of Republican "free market" nonsense from a reality-based market perspective and point out that "pro-business" Republican policies actually result in a corruption of the market, most frequently in terms of a reduction in competition.

In this case cap and trade is one way of simply internalizing into the transaction costs that used to be considered externalities of energy markets. But now we know those โ€œexternalitiesโ€ were just delayed costs that energy producers are shoving off onto taxpayers while degrading the environment and our future at the same time.

Having real functioning energy markets with all environmental costs accounted for is going to be vital in the future so we can use markets to squeeze every possible efficiency out of what energy resources we have. That has less to do with economic growth and capitalism and more to do with feeding the hungry and housing the homeless.

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Seriously, how do people turn into Republicans? Do they bite on the neck like zombies? Does it come from drinking bad water, or maybe a dirty toilet seat?

Fortunately it seems that recently the populace has begun to develop immunities.

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They did it with "Death Tax," with "Clear Skies" and "No Child Left Behind." We let 'em do it. I think Obama understands this and that who controls the vocabulary controls the debate...and will push back, hard.

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It is simply a lie to call this an "energy" tax because it will not "tax" clean energies such as wind and solar, or even nuclear. In fact, these industries will likely receive tax credits!

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Perhaps the Democrats should just pass the bill independently instead of resorting to dirty tricks like budget reconciliation? It wasn't ok when Republicans did it, and it's not OK now.

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I remember when the GOP attached their partisan policies to budget proposals because they were too unpopular to get passed the legitimate way. Seeing the Democrats do the same thing is disheartening. Aren't we supposed to be better than this?

Also, as much as I hate to admit it, the Republicans do seem to have a point. The energy companies getting hit by the cap and trade system are not as fond of their consumers as they are of their profits. They'll just increase prices for consumers. What are we gonna do? Stop using energy? We are still mostly producing energy using fossil fuels (I include nuclear energy here because it takes a lot of petroleum to fuel the mining and enrichment process), so they pretty much have us by the balls.

I think this may be a pick-your-battles kind of thing. It is unlikely that emissions will stop accelerating until we move off of oil. Kyoto's impact is regarded by most climate scientists as negligible, and it's hard enough to get the US population to accept even that much sacrifice.

Regulating the existing energy production system will be unpopular, costly, and ineffective. Obama may have won by a landslide and the Republicans may be nearly irrelevant, but the Democratic white house and congress aren't so secure that they can afford to screw things like this up.

If they pass this legislation, they better make damn sure that the energy companies can't just pass the costs on to the consumers or lay off their workers. Exxon Mobil and others can absorb these costs, the most important part of this bill is making sure they do.

People are having a hard enough time as it is, and significant increases in their bills will be felt 12 times as often as any tax cut, no matter which amount is greater by year's end.

Republicans are able to survive and get elected because they know how to manipulate those who only take things at face value. If you give them more opportunities to say "see how bad things are now that Obama's in office?", you'll be seeing a Republican president again sooner than you think.

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"If they pass this legislation, they better make damn sure that the energy companies can't just pass the costs on to the consumers or lay off" their workers."

That's the point. Your energy costs are supposed to go up. You get most of it back in the Making Working Pay Tax Credit which you get up to $250,000.

Cleaner energy will be really in demand, and they won't have any of the burdens. It'll take 20 years to change our energy economy. And it won't be easy.

It's time for putting away childish things. We are changing the weather, and it's not for the better. If Republicans want to put their faith in the global cooling fairy, they should at least pay for my Making Work Pay Tax Cut. I'm broke.

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Fair enough. You're probably right, and perhaps a more compromising, politically safe approach would be too slow to avert disaster.

Still, 20 years is a long time in politics. I'm not very confident that conservative voters will go along with this for two decades while on a steady diet of Republican spin.

Personally, I think we've long since passed the point where we could enact change that was both politically viable and effective. Then again, Obama's election surprised the hell out of me, so I can always hope that I'm wrong twice.

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"Energy Tax"? Hmmm, not bad. It's catchy, and you can dance to it. I like it. Let's go with it!

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"Pollution Tax" - Anything else is either too long and confusing, or leaves it too open to interpretation. No one wants their 'energy' taxed, especially if it's clean (if you have to explain you've already lost), and 'Cap-and-Trade' sounds like just more Wall Street funny-business.

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Hmmm, pollution tax. We've got a winner here.

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Personally, I have no problem with higher energy prices, if the cause of the hikes is higher "taxes" that can be used for alternative energy research. The ONLY way to reduce the consumption of fossil fuels in this country is to make it too expensive. The American people are too numb to any other form of persuasion. When gas prices reached $4 a gallon last summer, we saw a reduction in consumption and the oil giants got scared and prices went down, leading to a return to high consumption.

Put in place a high tax, cap and trade, whatever you want to to call it. Drive prices up at the pump and people will start to conserve. It's the only way to do it.

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