By Sen. Chip Rogers
WOODSTOCK (Dec. 22, 2009) – As world leaders met in Copenhagen to discuss so-called “climate change”, lawmakers on Capitol Hill are fighting over domestic legislation to cap U.S. emissions – and in turn our nation’s economic growth.
Georgians, like all Americans, will undoubtedly suffer a hit to our standard of living if this “cap-and-trade” system within the climate bill becomes law. This economic damage is especially true for small business owners, farmers, truckers, and ranchers that rely on carbon-based fuels to earn a living. Although it’s easy to ignore the fine print in the nearly identical House and Senate climate bills, one thing is clear — these bills extend more government control over our economy than any other legislation under consideration.
Hidden in this complex, 1,000+ page bill is $3.6 trillion worth of taxes on transportation fuels. Yes, $3.6 Trillion in new taxes. Clearly “trillion” seems to be the new “million” in Washington, D.C. This astronomical tax increase will be found first in your power bill, but will also impact the price of every good and service transported across our nation.
Numerous studies have determined the cap and trade bill will deliver a serious blow to America’s already struggling Gross Domestic Product (GDP), and leave Americans less disposable income and fewer jobs. According to one study, the average family will pay an additional $1,200 a year for energy under cap and trade. That’s 4.1 percent of Georgia’s per capita disposable income. Keep in mind this $1,200 figure does not include the increased price of almost all goods and services.
The National Black Chamber of Commerce estimates that cap and trade will reduce earnings for the average U.S. worker by $390 per year. They also conclude that for Georgia, this could mean a loss of 62,000 jobs over the next few years. If those jobs were lost today, it would increase Georgia’s unemployment rate from 9.7 percent to 11.0 percent. This diagnosis is also supported by Project 21, an African-American leadership network sponsored by The National Center for Public Policy Research. A spokesperson for the group argues that cap and trade would force utilities to outlay huge expenditures in order to retrofit operations. Consequently, consumers are again on the short end of the stick, ultimately footing the bill for these expenses through higher energy prices.
Though it’s hard to pick just one unjust aspect of the proposed cap-and-trade system, arguably worst of all is that it places the majority of the financial burden on consumers and producers of fossil fuel-based transportation. Fuel producers are granted a mere 2 percent of carbon dioxide “permits” under the current bill, but are held accountable for 44 percent of the bill’s carbon dioxide reduction requirements. This translates to all fuel users, or every consumer, ultimately paying much more for the energy they depend on. Crippling energy costs, such as these, will mean more closed businesses and more massive layoffs.
Take for example David McArthur, part owner of a family-owned bakery. He recently commented to a national news organization that small businesses like his can’t swallow the government’s solution to simply “raise prices”: “When we raise our price two percent, we lose customers. When we lose customers, we don’t need employees. It’s a vicious cycle. It never ends.” Mr. McArthur’s example will play out all across our nation if leaders in Congress have their way.
Another disastrous element of this bill is that it threatens to send our economy into a new tailspin with no real environmental gain in return. The Energy Information Administration (EIA) recently determined that putting transportation fuels like gasoline, jet fuel and diesel under a cap and trade program will result in as little as a 1.3 percent reduction in emissions by 2020, for a cost of up to $.73 per gallon (in 2020). Even more disturbing are internal memos from the U.S. Treasury Department, recently uncovered through a Freedom of Information Act request, that reveal the Obama Administration already knows cap-and-trade is a massive tax increase that could cost American taxpayers $100 to $200 billion annually.
Given all the facts, it’s highly doubtful Georgians would sign up for a setback of this scale, just as we’re bottoming out from the recession.
Senators Isakson and Chambliss need to look at the potential impact this legislation would have on our state, as well as our country. After all, a $3.6 trillion energy tax is a very real number with very real consequences. Our Senators must reject any bill that raises gas prices, cost jobs and give countries like China and India a free pass.
Sen. Chip Rogers serves as Senate Majority Leader. He represents the 21st Senate District which includes portions of Cherokee and Cobb counties. He can be reached at his office at 404.463.1378 or by email at chip.rogers@senate.ga.gov.
COLUMN
For Immediate Release:
December 22, 2009
For Information Contact:
Raegan Weber, Director
raegan.weber@senate.ga.gov
404.656.0028