Research Briefing

Despite Attempts To Rebrand Legislation, Obama And Democrats Pushing Same Old National Energy Tax

“President Obama Will Meet Tuesday With A Bipartisan Group Of Senators To Push For A New Energy Policy.” (Lisa Mascaro And Richard Simon, “Senate Democrats Poised To Start Energy Bill,” Los Angeles Times, 6/27/10)

OBAMA AND SENATE DEMS ATTEMPT TO SELL REBRANDED CAP-AND-TRADE ENERGY TAX

Democrats Attempting To Rebrand “Cap-And-Trade” As “Market-Based System For Punishing Polluters.” "[C]limate co-authors concede that part of what's going on is really just re-branding... Here's how Lieberman put it back when the trio began drafting their approach: 'You remember the artist formerly known as Prince? This is market-based system for punishing polluters previously known as cap and trade.'" (Coral Davenport, "A Bill Tailored To The Current Climate," CQ Weekly, 4/19/10)

• Last Year, Sen. John Kerry (D-MA) Sought To Rebrand “Cap-And-Trade” Bill As “Pollution Reduction Bill.” “Kerry last week sought to change the vernacular surrounding the climate bill and sell its concepts more broadly, insisting it is not a 'cap and trade' proposal but a 'pollution reduction' bill. 'I don't know what 'cap and trade' means. I don't think the average American does,' Kerry said. 'This is not a cap-and-trade bill, it's a pollution reduction bill.’” (Darren Samuelsohn, "Boxer, Kerry Set To Introduce Climate Bill In Senate," The New York Times, 9/28/09)

Yet “Cap-And-Trade” Still A Core Part Of Senate Dems' Legislation. “[C]ap and trade is still a core part of their plan. Instead of applying a single cap, the trio is taking a sector-by-sector approach, starting with electric utilities, which produce 40 percent of the nation's carbon emissions.” (Coral Davenport, "A Bill Tailored To The Current Climate," CQ Weekly, 4/19/10)

WHATEVER YOU CALL IT, LAWMAKERS FROM ACROSS AISLE OBJECT

Obama’s “Muted Call” Fails To Sway Congress. “President Barack Obama's muted call for comprehensive energy legislation failed to sway a hesitant Congress on Wednesday, with hopes for approval before November elections fading fast.” (John Whitesides And Richard Cowan, “Obama's Call On Energy Bill Fails To Sway Congress,” Reuters, 6/16/10)

Senate Showing “Little Appetite” For Cap-And-Trade Bill Passed In House. “With political will running short before the midterm election, the Senate has shown little appetite for a broader, economy-wide climate change bill as passed by the House almost exactly one year ago. Even a more modest carbon cap remains difficult for senators wary of another ambitious government program at a time of voter unrest over Washington's reach… A broad carbon-pricing system would essentially require power plants, manufacturers and transportation industries to limit the pollution that scientists say is causing climate change and would tax entities that exceed their caps.” (Lisa Mascaro And Richard Simon, “Senate Democrats Poised To Start Energy Bill,” Los Angeles Times, 6/27/10)

And Senate Energy And Natural Resource Committee Chair Jeff Bingaman (D-NM) Says “Difficult To See” 60 Votes For Cap-And-Trade Bill In Senate. Sen. Bingaman: “If you actually have a bill that puts in place a cap-and-trade system or a limit on greenhouse gases and a mandatory reduction in greenhouse gases, I think it is difficult to see where we get the 60 votes to pass that legislation.” (Ben German, “Bingaman: ‘Difficult To See’ 60 Votes For Climate Change Bill,” The Hill’s E2 Wire, 6/27/10)

• Senator Byron Dorgan (D-ND) Says Obama Lacks Votes In Senate. "Some say you've got to bring climate change to the floor of the Senate right now. I don't think there's 60 votes for a climate change bill.” (John Whitesides And Richard Cowan, “Obama's Call On Energy Bill Fails To Sway Congress,” Reuters, 6/16/10)

 BECAUSE CAP-AND-TRADE WILL KILL JOBS AND RAISE PRICES FOR HOUSEHOLD GOODS

Senate Dems' Bill Would Set Same Cap On Carbon As House Dems' Bill. "The Kerry-Lieberman climate bill is expected to call by 2020 for a 17 percent cut in emissions below 2005 levels, with the emission limits applying in different ways to power plants, petroleum refiners and trade-sensitive manufacturers." (Darren Samuelsohn, "Senate Climate Bill to Be Rolled Out Wednesday," The New York Times, 5/7/10; "The American Clean Energy And Security Act," House Energy and Commerce Committee, 7/09)

Dems' Cap-And-Trade National Energy Tax Could Mean Nearly 1 Million Jobs Lost Per Year. "Overall, a cap-and-trade system that reduces annual GDP by 0.34 percent per year can be expected to reduce U.S. employment by roughly 964,900 jobs per year, reduce household earnings by $37.8 billion, and reduce total U.S. economic output by $136.1 billion." (Andrew Chamberlain, "Who Pays For Climate Policy?" Tax Foundation, 3/09)

CBO Says "Cap-And-Trade" Would Lead To 3.5 Percent Decrease In GDP By 2050. "[T]he Congressional Budget Office (CBO) concludes that the cap-and-trade provisions of H.R. 2454, the American Clean Energy and Security Act of 2009 (ACESA), if implemented, would reduce gross domestic product (GDP) below what it would otherwise have been--by roughly 1/4 percent to 3/4 percent in 2020 and by between 1 percent and 3.5 percent in 2050." ("The Economic Effects Of Legislation To Reduce Greenhouse-Gas Emissions," Congressional Budget Office, 9/17/09)

And Small Businesses Not Hiring Due To Concerns Over “Cap-And-Trade.”  "Legislation aimed at tackling climate change might raise businesses' energy costs ... Many companies say they have responded by freezing hiring, cutting benefits and delaying expansion plans. With at least 60% of job growth historically coming out of the small-business sector, according to the government's Small Business Administration, that kind of inertia could impede an economic recovery." (Gary Fields, "Political Uncertainty Puts Freeze On Small Businesses," The Wall Street Journal, 10/28/09)