Government To Use Tax On Energy Production To Subsidize Energy Consumption
Apparently our esteemed political leaders in Congress need to review the laws of supply and demand.
WASHINGTON – The Senate has endorsed using revenues from controversial cap-and-trade auctions of permits for emitting greenhouse gases to help consumers pay higher gasoline and electricity prices.
On one hand they’re going to pass what amounts to a passive new tax on energy production by forcing energy producers (coal plants, natural gas plants, etc.) to purchase carbon credits from the government. This will both depress the supply of energy as some producers are forced out of the market and drive up the price of energy as the expense of the taxes and the decreased supply hits the market.
On the other hand, they’re going to subsidize energy consumption by buying it down with government entitlements. This will drive up demand for energy as people consume more than they would have anyway thanks to the subsidies, which in turn will drive up the price of energy even as the aforementioned carbon credit tax depresses supply.
The result? A perfect storm of unnecessary stupidity that is going to take a heavy, heavy toll on what you pay for energy. And not just you, but the people you work for too. Meaning layoffs. Cutbacks. Downsizing. Budget cuts.
Hope ‘n change!
