The cap-and-trade energy tax – If passed is the final shoe to drop

             This time there will be no recovery. The disaster of 1929 was different. Then at least after the 1930’s America had a thriving industrial base that employed virtually every able bodied person in the nation. Today’s economy has to deal with the costs associated with threats from, Iran and North Korea, Iraq and Afghanistan. Add to this the inevitable increase in Tariffs, higher taxes, higher unemployment [which is already at 1930’s levels], bloated welfare rolls, and the impact of illegal aliens upon the national economy, and the last straw is likely to be the cap-and-trade energy tax bill passed by the House yesterday.  Passing a government healthcare plan that will be multiple billions more expensive than Medicare will only accelerate the ultimate collapse of the U.S. Economy.

            Democrats realize that Red States such as Georgia which are in the highest energy-intensive sectors (i.e. manufacturing) will be affected by higher taxes the most, but job losses in the Northeast and South will be even more critical to the economy.  What does it say about us and our representative form of government when the House members who voted for the Waxman-Markey energy tax had not even read the 300 page amendment? Certainly this “representative” form of government is in meltdown and centralizing power in the Federal Executive will toll the death knell for any hope of recreating what America once was.

            It doesn’t take an economist to know that when the cost of energy goes up so do prices and consumption will go down. One estimate is that by 2029, 3 million fewer manufacturing jobs will exist as a direct result of the energy tax. Three liberal House Republicans from New Jersey cast the deciding votes for the energy tax.  If you’re an importer of commodities, it won’t matter how cheaply you can create them if the Tariff is high and consumers do not have the money to buy your products. Better look for a market in China or else ware in the world.

            This draconian energy tax will destroy 57% of the jobs in the plastic industry, and 54% of the jobs in the rubber industry.  Every product that is manufactured that has plastic and rubber components will be more expensive. This tax will fall upon consumers of all income levels - so much for the President’s promise not to raise taxes on anyone making less than $250,000.

            The immediate impact of the Waxman-Markey, cap-and-trade-energy tax will be the loss of one million jobs per year. The loss in consumer demand will be $9.4 trillion by 2035. By then as the economy slows the tax revenue will dwindle which will add an additional $4,609.00 tax working families of four. In addition to the lost revenue resulting from less consumer demand from the unemployed, fewer taxpayers will be supporting more welfare recipients. The energy bill amendment already has a provision for taxpayer support for the future unemployed.  

            Proponents of the bill are citing the Congressional Budget Office (CBO) accounting which sets the cost per household at $175 in 2020. But those figures are not economic projections. They did not take into effect the decline in jobs and GNP, and the concomitant increase in the need for tax revenue to operate the associated administrative plutocracy.  Experts who have reviewed the CBO figures dispute the conclusion that in 2020 there will only be an additional $91.4 billion increase in the costs of production, and have set the figure at $141 billion.

            The Heritage foundation’s figures promise an astounding increase in family-of-four debt of $114,915 by 2035. The economy can not run on a chorus of government economists singing Kum-Ba-Yah, because you can’t make a wallet out of a sow’s ear, there isn’t enough leather.