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Sunday, November 15, 2009

UK: Lawmaker Presents Cap-N-Trade Plan Where Individuals Are Issued Carbon Coupons

In a plan that is similar to the Democrats' plan for the US, the British are looking to give out what I call "carbon coupons" for individuals to use whenever they make a mark on their carbon footprint that they must pay extra for, if they go over their allotted amount:

Lord Smith of Finsbury presented a plan earlier in the week in which “individual carbon allowances” would be doled out to Brits in an effort to reduce their “carbon footprints.” If passed by their government, the plan would, “involve people being issued with a unique number which they would hand over when purchasing products that contribute to their carbon footprint, such as fuel, airline tickets and electricity. Like with a bank account, a statement would be sent out each month to help people keep track of what they are using.” If they hit zero, then they have to buy more credits. If they don’t use up all their credits, then they can sell them to others.

The British plan is pretty much the way that cap and trade would work in the US if it were passed by Congress. Not only companies, but individuals would be rationed a “cap” on things such as gas for their vehicles, heating and cooling their homes and businesses, and electricity. And they would be able to “trade” whatever they don’t use. Even if this particular tax isn’t directly applied to individuals at first, it will be passed on indirectly, because businesses will pass on that extra cost to customers. So once individuals start getting hit directly, they will, in effect, be getting hit twice.

Great! More taxes! That is just what this economy needs to rebound. The government needs to suck their citizen's hard-earned money away not just once but twice. They can't just take one bite from the apple. They need two. People won't miss their money. Right? It's such a minute amount that they won't even notice:

Democrats are pushing for a 20 percent reduction in greenhouse gas emissions by 2020. However, back in March, The Wall Street Journal reported that the congressional budget office, “estimates that the price hikes from a 15% cut in emissions would cost the average household in the bottom-income quintile about 3.3% of its after-tax income every year. That's about $680, not including the costs of reduced employment and output. The three middle quintiles would see their paychecks cut between $880 and $1,500, or 2.9% to 2.7% of income. The rich would pay 1.7.” With unemployment already being over 10 percent (as of this writing) Republicans have expressed a deep concern over the impact of a bill like this on the present economy if it were to pass.

Wow, I could but a lot of Yohoo with $680. Second thought, this may not be the best idea Congress ever had.

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