Monday, April 27, 2009

Why Carbon Tax or Cap and Trade Won't Work

Congress is still trying to decide how to tax the very air we breath. That's right I said it, the very air we breath. The carbon tax and cap and trade are just another way for the government to tax Americans. They will tell us that the tax will be on companies, however, I don't know a company that does not pass its cost on to its buyers. It is just good business sense.

Now you probably think I don't care about the environment because I don't want this new tax program and you would be wrong. I do want clean air just as much as the next person. What I don't want is another stupid government program that will not work. What won't work? It will not.

A company that creates a lot of pollution just needs to have enough money to pay for more polluting credits to be within their limits. This means instead of the company using their cash to buy or use less polluting methods of production, they just keep on polluting. Now that is something I want.

Here is the solution. If we want these companies to stop polluting or to adopt cleaner modes of production, we need to set standards. These standards need to have severe fines if not met as well as reasonable time-lines for completion. These standards need to be set by scientist not law makers. We can leave the fines to the legislators and use the EPA to determine if and when the companies have complied.

Everyone wins. The environmentalist get their CO2 reduction, lawmakers feel good that they made the scary corporation comply, and all Americans avoid a new tax. I do realize for some Americans the price for some of their products may go up during the transition, however, if you don't like paying a higher price you can move. That's right, don't call yourself a victim, do something, take action.

Harry.