John Fund: Obama’s Cap-and-Trade

From The Wall Street Journal’s Political Diary:

Some Democrats Didn’t Get the Memo on the ‘Climate Emergency’

Most of President Obama’s dramatic budget changes are likely to pass Congress, but expect even many Democrats to question his plan to create a “cap-and-trade” program for carbon dioxide. The plan would bring in some $646 billion over the next ten years according to the Obama budget office. The vast majority of the revenue supposedly would be used to create tax cuts for low-income families.

Democrats from Rust Belt states are already skeptical. Their region would be hit hard by the new rules, especially those with large coal industries. A total of 15 Senate Democrats have signed a letter urging that any cap-and-trade legislation “ensure that consumers and workers in all regions of the U.S. are protected from undue hardship.” Those signing included Senators Debbie Stabenow and Carl Levin of Michigan, Blanche Lincoln and Mark Pryor of Arkansas, Jim Webb of Virginia, Evan Bayh of Indiana, Claire McCaskill of Missouri and Ben Nelson of Nebraska.

The scope and ambitious price tag of the Obama program also appear to have united business groups in opposition. “We want to thank the administration for killing all industry support for cap-and-trade,” William Kovacs, the top energy analyst at the U.S. Chamber of Commerce, told the Washington Times. “President Obama has consolidated the opposition.”

– John Fund

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