cap and trade

Chris Murphy meets "the mob" in Simsbury, CT

Help me out here. This guy is NOT wearing Brooks Brothers  

At Meet-And-Greet, Rep. Chris Murphy Meets Some Hostility

Passionate Crowd

SIMSBURY - Chanting "Dump Chris Dodd" and "No national health care," scores of angry constituents confronted U.S. Rep. Chris Murphy at a meet-and-greet outside the Super Stop & Shop Wednesday afternoon.Murphy, a Democrat who represents the 5th District, routinely holds informal office hours at supermarkets and strip malls, but such gatherings are generally uneventful. This time, many of the 150 or so attendees were so boisterous that Stop & Shop management called the police to ask that the crowd be moved from the store's entrance. 

Dunno, Chris: maybe if you hadn't voted to exempt yourself from the so-called "public option" health plan or vote to qualify illegal aliens for the program the crowd might have been a bit less peeved

 

OR-1: David Wu won't read bills or answer questions about them

David Wu melted down at a townhall in Oregon when asked why he won't read the health care bill or the cap and trade bill. Watch it here:

Congressman Wu meets Samurai Mom from WashCoGOP Oregon on Vimeo.

Wu managed no coherent response. That isn't totally unusual for him. I was in the House chambers for the Medicare vote, when I worked for Nick Smith. There were many strange things that night. But one of the weirdest was Wu's behavior. David Broder reported (pdf) that a fellow member of the House described him as "almost catatonic."

But hey, why be able to read or explain a bill that he thinks is one of the most important ever, right?

H/T NWDigest.

The climate fight and the Maginot Line

Jon Henke is obviously a more astute analyst than moi, so I post this with some angst. But I think he is thinking along the lines of French military strategists after World War I,

As historians recall, France was bled dry from fighting a trench war deep in its own terrain. So apres guerre the French decided to build high tech fortifications-- the Maginot Line--along their frontier to cause the war to be fought on the German side of the border and on  French terms.

By 1940, of course, the Me 109 and the Stuka proved to be well able to fly over fortifications and destroy French forces from the air. Oops.

I fear we may be doing to same thing by trying a new and improved strategy to deal with "climate change".  Both the ambient and political climate may not be what we expect.

First, there are two central flaws with the Republicans becoming the champions of carbon taxation. First, it muddles the party's anti-tax message. It's easily trumped politically by the advocacy of economically delusional class warfare.  Instead of arguing taxes in general ought to be reduced or kept from rising, we are left bargaining over what taxes to raise. Is that an argument that is going to win elections?   

Secondly, if the carbon tax works it will generate progressively less revenue. Since I think the "starve the beast" strategy has pretty well been proved to be a failure in practice (expecting a long term libertarian control for Congress is daft) the result will be progressively higher deficits and demands to raise other taxes. While payroll or sales taxes do penalize "good" activity, they also tend to mirror the overall economy. A carbon tax intended to readjust the economy to lower carbon use will inevtiably reduce its own revenue and plants the seed to bring back other taxes.

That said, I'd rather have the efficient mechanism of a carbon tax than the crony capitalism of cap & trade. But I think we ought to reconsider whether either is inevitble.

I'm a skeptic on global warming, not a denier, but the empirical observable information in the northern US this year puts a real dent in the alarmist camp.  We have yet to see 90 degree weather in CT all summer, and this seems to be the case as well in MN

I'm not sure hitching our political wagon to getting huge heat waves in populated areas is so wise.   It's "An Inconvenient Truth" the salience of this issue depends on observable episodes of warm weather.

I also think the based on my read, the salience of the "climate change" issue is focused on a) younger and b) better educated voters.  I suppose a long run argument can be made to address this issue, but in 2010 we are going to be dealing with an electorate which is going to skew older.  Are we better off using limited time and resources talking to 50 year old people who are highly likely to vote than 20 year old voters who may have simply cast an Obama-mania  vote in '08? 

It may be true that the "chattering classes" may think a response on this issue is essential ( see David Cameron, UK) but the cold hard truth is we've already lost virtually every one of the high end House seats where this issue matters (WA 8 and IL 10 the visible exceptions). The low hanging fruit for Republicans in 2010 is likely to be in blue collar places like IN 9 and OH 16 where the cost is obvious and the reward speculative for enviromental legislation.

Now how are the Democrats reponding? And doesn't that say something.

My Congressman, Chris Murphy, who holds a swing seat in a blue state, voted for Waxman-Markey. And how did he justify his vote? Based on the alleged argument the bill would wean America from foreign sources of energy and the cost of inaction was too high. (hmm, open up ANWR, naw!)

As the CT Republican State Chairman pointed out in his weekly e-newsletter.     

But here is the kicker - no where in this entire letter is global warming mentioned or the need to save the polar bears or the quality of our air. In it he simply says, we must rush to placing the development of a new whole technology in the hands of the government, to decide, through taxes, who can use what fuel for what purpose. If it doesn't work out, well, at least Uncle Sam tried.

(IM: Guess it's now not so much fun being Henry Waxman's towel boy, Chris.)

  I think that Democrats have decided that the Global Warming issue is a stone dead loser in the face of the Great Recession. (Yes, the salience of the environmental issue moves in lockstep with the economic cycle).Much like the antiwar movement, this was a useful cudgel against the eveeeel Republicans, but now they are quickly losing their desire to actually have to walk the walk on taxing the crap out of everyone to "save the planet".  Looking at the climate issue through the prism of: a) the 2006 election when the economy was prosperous; or b): the 2008 election with its unusually high youth vote, may just cause us to fight the "last war"; now that we are going to be dealing with the grim economic conditions expected for 2010 and 2012.  Given our opponents were astute enough to win the last two elections, why would we benefit from picking up an unpopular issue they are now either walking or running away from? 

 

How Republicans should win the climate fight

Republicans have fought cap and trade wrong, and they're going to lose because of it.  If the bill passes, they've lost a policy fight; if the bill fails, Republicans will not get credit for lower prices, but they will be blamed (fairly or not) for obstructing progress on environmental problems.

Let's stipulate a few political realities: (a) the public generally agrees that something must be done about climate change, (b) cap-and-trade is expensive, complicated, inefficient, unpopular, subject to industry gaming and political manipulation, (c) cap and trade is widely regarded (including by environmentalists) as inferior to a carbon tax, but (d) Democrats are pushing for cap and trade anyway, because it is "politically possible."

What should Republicans do instead?  Propose a carbon tax. 

But, instead of a straight tax increase (as Democrats want), Republican should propose a carbon tax that replaces the payroll tax.   That is revenue neutral, meaning there is no total tax increase.

There are many reasons this works.

  • Environment: Republicans would be offering the most pro-environment solution to climate change. 
  • Cost: A Carbon-for-Payroll tax would address the climate change problem without imposing any additional tax on Americans (unlike cap and trade).
  • Externalities: The payroll tax disincentivizes positive externalities - labor and employment.  The carbon tax disincentives negative externalities - congestion, pollution, greenhouse gas emissions/climate change, dependence on foreign oil, money sent to tyrants and enemies, foreign debt, the trade deficit, price volatility.
  • Tangibility: A carbon tax is a consumption tax (e.g., a gas tax), which consumers feel in a tangible way and can adjust behavior to optimize their exposure to the tax. Payroll taxes is money they never see, so the cost is much less noticed.  The more sensitive the public is to the price they're paying for government, the more rational they will be about government spending.

Finally, the key: The idea of swapping the payroll tax for a carbon tax was proposed by....Al Gore.  So you've got a coalition composed of environmentalists, foreign policy hawks, the Chamber of Commerce (and businesses in general), Exxon, the auto industry and Republicans who want to stop higher taxes.

Republicans should be offering The Al Gore Amendment to every piece of energy/environment legislation in sight.  And if Democrats oppose it, then the burder is on Democrats to explain why they refuse to support the most pro-environment and pro-economic growth proposal to address climate change.

That's good policy and good politics.

Blame Ourselves

Last month after the House passed Waxman-Markey with help from 8 GOP votes, Robert Stacy McCain called on conservatives to stop giving money to the NRCC: Not One Red Cent. I thought this was an over reaction at first. But then I stopped by the NRCC to see if they were actually supporting any of the 8 cap and tr8ors. I clicked on their Patriot Program and learned that "The NRCC unveiled ten incumbent Members who, because of their outstanding efforts as "Patriots," will be rewarded with participation in "Patriot Day" on June 25th." But was there a list of these "Patriots" anywhere on the NRCCs site? No. I had to resort to Google news to find out that:

Among those on the list are Reps. Dan Lungren, Ken Calvert and Brian Bilbray of California, Judy Biggert of Illinois, Anh “Joseph” Cao of Louisiana, Thad McCotter of Michigan, Erik Paulsen of Minnesota, Leonard Lance of New Jersey, Christopher Lee of New York and Dave Reichert of Washington.

Matching the two lists up we find that the NRCC's Patriot program is in fact providing comfort to two traitors: Reps. Leonard Lance (NJ-7) and Dave Reichert (WA-8).

So on second thought, yeah, by all means conservatives should definitely stop giving any money to the NRCC until Lance and Reichart are kicked out of the Patriot Program. But that is not enough. Duncan Black and I don't agree on much policy wise, but when it comes to politics,  we agree a lot. Responding to RSM, Atrios wrote: If you ever demonstrate an ability to actually raise money for these organizations, they might start caring what you think. Before? Unlikely.

But this isn't really what the netroots did. They didn't move their party to the left by throwing money at the DCCC. Quite the opposite. Instead they created their own institutions, a parallel party, that allowed them to support the candidates that they trusted. So instead of leading a boycott of the NRCC, conservatives should be raising money for candidates challenging those Dems who are vulnerable to cap and trade.

But how can we do that? The left has ActBlue which allows bloggers to get together and create fundraising pages that allow easy one-stop shopping for donating to Democratic campaigns. So where is our ActBlue? Why can't we go out and create a page allowing fired up conservatives to vent their anger at the NRCC by giving their money directly to challenger campaigns? Slatecard is retooling. So is Rightroots. Meanwhile ActBlue is enabling the nutroots to raise money for Michael Jackson Fans AGAINST Peter King.

Conservatives are fired up about Obama's spending and imminent taxing disaster. Independents aren't far behind. We need to make sure our infrastructure is in place to best harness the incipient wave of Obama anger.

Austin Tea Party Debrief

Greetings from the Great City of Austin in the Great State of Texas in the Good Old U S of A on this, our Independence Day.  Just spent three hours under the 105 degree Texas sun (in addition to walking back and forth to the capital...about 2 miles in each direction).  Before I collapse from Heat Stroke, let me share a few observations:

Attendance: Roughly 3000.  Substantially lower than the April tea party @ the Capitol.  Then again, at the April party the temperature was 75.

Crowd: Mostly folks in their 50's and 60's.  Some families with children.  All in all, an older crowd than April.  About 30% Ron Paul types, 50% more traditional GOPer, 20% assorted other.

Signs: Generally quite clever.  Personal favorites: any of the several that referred to Waxman/Markey as "Crap and Trade."

Sleeper GOP Gubernatorial Candidate: Debra Medina.  I might be biased because I met her today (also briefly met Sen. Cornyn and Gov. Perry) AND got to talk to her a bit.  She's a down the line, SERIOUS, conservative.  Like the message, concerned about viability.  I told her I intend to re-elect the incumbent, but that if she could prove herself a viable candidate in BOTH the primary AND general, I'd consider giving her my vote.

Most Embarrassing Moment for a Speaker: Sen. John Cornyn being greeted by a loud chorus of Boos as he took the stage due to his vote on TARP.

Most Embarrassing Moment for the Ron Paul supporters: Continuing to Boo Senator Cornyn after he acknowledged their concerns and moved on to Porkulus/Crap and Trade/Obamacare where he's firmly on our side.

Best Speaker, Runner Up: Wanye Allyn Root.  The 2008 LIbertarian Party Vice Presidential Nominee gave the crowd an inspiring speech on the value of limited government with a whole lotta quotes from Goldwater and Reagan thrown in.  Gets brownie points in my book for his rousing (by libertarian standards) defense of President Bush's overspending and bailouts being several orders of magnitude less bad than President Obama's overspending and bailouts.

Best Speaker, Overall: Governor Perry.  No one else even came close.  Whatever his alleged flaws, Governor Perry has done A TON over this past decade to have left us the strongest economy in the country right now.

In many ways, the attitude of people in Texas towards Governor Perry right now reminds me of the attitude in NYC of people towards Rudy in July 2001.  The man's gotten so much right that his citizens now take these things for granted.

All in all, an Afternoon well spent!

I hope this helps.

That is all.

Cahnman out.

Cap and Trade gets Rolling Stoned

It isn;t often that Matt Taibbi of Rolling Stone and I are on the same page, but here we are.

Taibbi excoriates Goldman Sachs for its role in the internet, oil and housing bubbles, and then identifies their next great scheme

And instead of credit derivatives or oil futures or mortgage-backed CDOs, the new game in town, the next bubble, is in carbon credits — a booming trillion- dollar market that barely even exists yet, but will if the Democratic Party that it gave $4,452,585 to in the last election manages to push into existence a groundbreaking new commodities bubble, disguised as an "environmental plan," called cap-and-trade. The new carbon-credit market is a virtual repeat of the commodities-market casino that's been kind to Goldman, except it has one delicious new wrinkle: If the plan goes forward as expected, the rise in prices will be government-mandated. Goldman won't even have to rig the game. It will be rigged in advance.

Message to Matt. It's not just Goldman Sachs that's in on the fix. It's also the Chicago Mercantile Exchange.  And lookie who is on the receiving end of the fix. Remarkable.

 

 

 

Dear Leader ZerO Ecstatic House Passes Cap and Trade

Dear Leader ZerO said that he will not raise taxes for anyone making under $250,000. He has a way to do it through the back door. You will pay more for energy and anything that energy is needed to make (everything). He will tax the Energy companies and they will charge you more. The Energy company pays a tax, you just pay higher bills.

As Dear Leader ZerO said in an interview in January 2008 with the San Francisco Chronicle:

"When I was asked earlier about the issue of coal…under my plan of a cap and trade system, electricity rates would necessarily skyrocket…even regardless of what I say about whether coal is good or bad, because I’m capping greenhouse gasses, coal power plants, natural gas…you name it…whatever the plants were, whatever the industry was, they would have to retro-fit their operations. That will cost money…they will pass that money on to the consumers."

Your electricity bill will go up by 90%. If you are paying $300 a month now, you will have to pay $570 a month after this "non tax" is signed into law.

The cost of gasoline will go up by 58%. A gallon of gas that now costs $2.64 will cost you $4.17 a gallon.

On average, every families energy costs will go up by $1,241 per year on average. That is an extra $103.42 per month you will have to pay. But mind you, it is not a new tax on anyone making less than $250,000 a year. Just a way for you to pay more to your gas station or more on your electric bill. The tax is being paid by them, not you.

Reference : http://www.heritage.org/Research/EnergyandEnvironment/wm2450.cfm

The House of Representatives bill is H.R. 2545, sponsored by Representatives Henry Waxman (D-CA) and Ed Markey (D-MA). On June 26, 2009 the United States House of Representatives passed H.R. 2545, the “American Clean Energy and Security Act". 219 Representatives voted for it, 212 against.

If your Representative voted for it, they should be fired.

http://clerk.house.gov/evs/2009/index.asp http://clerk.house.gov/evs/2009/roll477.xml

The United States Senate has to pass their version now. You can help stop this hidden back door tax by contacting your Senator now.

United States Senator Directory:

http://www.senate.gov/general/contact_information/senators_cfm.cfm

Call your Senator now.

http://www.youtube.com/watch?v=MCde5haxalA

http://www.youtube.com/watch?v=MZrxuvyENJY

 

Go with Joe or choose the ice floe

First, a big shout out to my buds @ The New York Times. While the "Paper of Record" chose not to use my name or the name of RedState's Moe Lane we were both quoted verbatim as the authoriative voice on what ought to be done about the "Cap & Tr8-ors"

Thanks for giving this a wider audience

 "I don't think one can minimize why this was a truly hideous vote for those eight folks," a commentator on the conservative blog the "Next Right" wrote. "Here we had a chance to derail the Obama socialism train and restore the Republican party to policy relevance, and these guys bailed out so they could get a nice mention in the NY Times."

Guess it still feels like John Mellencamp sang in "Small Town" "hey, look at who's in the big town"

I digress

Here's the choice for the Cap &Tr8-ors

081112_lieberman_grim.jpg117.jpg

former Democratic Vice Presidential nominee Joe Lieberman has come out against Obama's "public option" health care scheme.

“If we create a public option, the public is going to end up paying for it,” Lieberman said following an hour-long confab with public-health experts at the Ashmun Street community center of the Monterey Homes public housing complex. “That’s a cost we can’t take on"

I've disagreed with Joe frequently, but on this one he is clearly part of the "reality-based community".  Evidently "Countrywide Kent" Conrad is also not sipping the public option kool aid either.

So, here's the deal for Rep. Bono Mack, Castle, Kirk, Lance, LoBiondo, Reichert and Smith (I omitted McHugh on purpose; he's already been bought).

 You can go with Joe Lieberman and publicly break with the central element of Obamacare.  

Or you can get sent to the ice floe.

Choose Wisely. (if you you choose poorly, this will do you more good than Pac $$ and endorsements)

How Obama failed on cap-and-trade and consequences for health care

Early coverage of the Cap and Trade bill has focused on the successes of Barack Obama and Nancy Pelosi, although I noted that it was also a success for conservative movement groups.

However, focus is beginning to shift. Maybe they didn't get what they wanted? The New York Times' John Broder notes that various groups lobbied the hell out of it. He focuses on the utilities:

The biggest concessions went to utilities, which wanted assurances that they could continue to operate and build coal-burning power plants without shouldering new costs. The utilities received not only tens of billions of dollars worth of free pollution permits, but also billions for work on technology to capture carbon-dioxide emissions from coal combustion to help meet future pollution targets.

By not auctioning these permits, Obama lost a huge amount of money for his earlier proposals. Donald Marron notes that this totals about $600b in revenue that this bill didn't create.

Now think about what Joe Lieberman said yesterday about the health care bill...

Lieberman cited the cost of a public plan as his primary beef with the plan.

"Part of my concern is that, and this goes to the…growing national debt, that inevitably if we create a public option, the public is going to end up pay for it and that's a cost we can't take on," he said.

If Obama had come out of this cap and trade debate with an extra $600b, the healthcare debate would look a lot -- A LOT -- different.

As the scope of the deficit becomes clearer and the political salience of it rises, the cap and trade bill may look like an increasingly poor deal for America, but also the rest of the Obama agenda.

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