March 5, 2009

Larson seeks carbon tax

Press release from U.S. Rep. John Larson, the East Hartford Democrat whose 1st District includes Bristol:

CONGRESSMAN LARSON INTRODUCES CARBON TAX LEGISLATION
Washington, DC -- Congressman John B. Larson (CT-01), Chairman of the House Democratic Caucus, introduced legislation today that would tackle our climate change crisis while protecting hard working Americans from rising energy costs.  The carbon tax legislation will put a tax on the producer of carbon emissions and pass the revenue on to working Americans as a payroll tax rebate.
 “I believe that the best way to address climate change is the way that is simplest and most transparent,” said Larson.  “Unlike a cap and trade system, my carbon tax would create no complex new bureaucracies or complicated auction schemes. Rescuing our environment should not be an excuse to create a new market for investors to exploit.  We’ve seen the impact of rampant speculation and out of control derivative trading on our energy market, our housing market, and our stock market.  Our planet is too precious to put in the hands of Wall Street executives looking to make a profit.” 
Instead of creating a market that would be a boon for Wall Street, Larson’s legislation would create a tax cut that would be a boon for working Americans.  A recent study found that the auction a cap and trade system would create would lead to the world’s largest derivative market. Warren Buffet wrote in his letter to shareholders this week that derivatives are dangerous and impossible to regulate.  In fact, some companies are already trading carbon credit derivatives in anticipation of a cap and trade system.  
Larson said, “if we haven’t been able to properly regulate derivatives so far, what makes us think we would be able to regulate carbon credit derivatives?  We are suffering the effects of one speculative bubble bursting now.  The American people simply do not want another system they might have to bailout.”
The American people want their government to level with them.  They understand that any climate change policy we enact will increase energy costs.  So, rather than hide those costs in a complicated auction system, Larson’s legislation is simple and straightforward.  It would put a $15 per metric ton tax on carbon at the source – the mine mouth, refinery or point of importation - in the first year, increasing $10 per year after that.  The revenue would be distributed right away to hard working Americans and alternative energy investment.
“I have yet to meet one person who can explain a cap and trade auction  in a way that someone at Augie and Ray’s, my local diner, could understand,” said Larson. “But, a carbon tax is a simple solution that people can wrap their arms around.”
A carbon tax also offers the benefit of price certainty to American families and small businesses. A cap and trade system could lead to wild fluctuations in energy prices, making it hard for families and businesses to plan and budget.  By regularly monitoring emissions and adjusting the rate of taxation, as this legislation does, it can also provide some certainty in emissions reduction.
Congressman Larson’s carbon tax legislation fits within the broad framework the Obama Administration laid out in its budget outline.  It would use the revenue of a new climate change policy to pass tax savings on to the consumer and help impacted industries.
“We agree on the goal, the debate is over the mechanism,” said Larson.

*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

10 comments:

Anonymous said...

BS this would be savings to consumers!!! Pay higher energy rates and we will pass the tax dollars on to you through a rebate plan or some other bs idea. Please stop this insanity, somebody!!!

Anonymous said...

This tax will mean higher prices for fuel. Thanks a lot, Mr. Larson. You're doing nothing for hard working Americans.

Anonymous said...

The "taxed" entity would just raise its rates/prices to have "us" pay the tax anyway. Larson is a blow hard

Anonymous said...

This is just the start of the Obama tax increases!!!

Anonymous said...

Let me try to follow the mind of the genius here...

We tax those who emit carbons, utilities and manufacturers, no doubt. Energy bills will rise when energy plants pass along the tax and jobs will be lost when businesses get socked.

Then we give the money to consumers who are faced with higher utility bills and have lost their jobs.

Who benefits, polar bears?

Anonymous said...

This guy is an absolute idiot!

Anonymous said...

Larson is so far out of touch. He has no idea that people are strugling to put food on their tables, educate their kids and keep their home from forclousure. He has done nothing to save our retirement accounts. Yet his buddy DODD has a cushy little place in Ireland, the these guys moan about executive pay rates. Where is the accountability ...where is the intelligence...where is the common sence. Certainly not found in Larson DODD or Barrock Hussein Obama.

Anonymous said...

Does flying back and forth, FIRST CLASS, at taxpayer expense, reduce carbon emissions?

Anonymous said...

Larson should be run out on a rail! What a dope! How he can not see how a tax increase like this gets pushed down the line to consumers is beyond me. IDIOT!

Anonymous said...

Pelosi has her own private jet...large enough to fly non stop from Washington a to San Francisco. Her first tax payer paid ride was not big enough to go non stop...so this wild eyed spending liberal whines like a baby and gets one that will fly coast to caost at OUR expense. And these are the people complaining about corporate America's private jets? Not to be out done by the wild eyed spender, her boss...the big BO see's fit to fly back to the hood to catch a Bulls game. Man are these people screwing the US hard working public.