We Understand “Tax and Tax” Didn’t Test That Well With Focus Groups

You know what’s a good thing to do when you are mired in a deep recession?

Create a carbon “Cap-and-Trade” program that takes money and resources away from cheap, time-proven, efficient methods of energy production and redirect them towards really expensive, largely unproven, horribly inefficient methods.

Why?

As Joe Biden might put it, it’s a three-letter-word: J-O-B-S.

Jobs.

How do you demonstrate that redirecting scarce capital from inexpensive forms of energy to costly forms of energy creates jobs?  Easy.  The Environmental Defense Fund (which is often mistakenly believed to be a fund created to defend the environment but is in fact a job creation advocacy group) helped to prepare a rigorous study in which companies that might benefit from being given government money were asked if they thought they might benefit from being given government money. 

The answer? A resounding YES! (We Can Take Government Money!)

The President’s cap-and-trade proposal would require companies to give money to the government for emitting carbon dioxide. This should not be confused with a “carbon tax” which would require companies to give money to the government for emitting carbon dioxide.

While that might sound similar, we should highlight one important detail: Under cap-and-trade, companies would receive “carbon credits” that they would then be able to trade with their carbon-emitting friends, kind of like baseball cards.  Doesn’t that sound like fun? Plus, it allows policy makers to point out that it’s a “free market” solution, only you are forced to go to the market and are required to make a purchase.

Say, “free markets” are much more efficient when you get rid of that messy “free” part!

Over time, the amount of carbon allowed per credit would be reduced until, by 2050, it would be set at 83% below 2005 levels, which would basically require the United States to replace the bulk of its industrial capacity and electric power generating capabilities (including nearly 50% more capacity to address projected growth in demand) in the next 40 years.

But not to worry, at least these non-carbon-emitting renewable processes don’t actually exist yet nor does a suitable electric grid to distribute them.

What could go wrong?

Fortunately, these new technologies will be fully funded as the vast majority of tax, er, “carbon credit” revenue raised will go to middle class tax cuts, and studies have demonstrated that most middle class families typically apply tax refunds towards advanced clean energy development and smart grid technologies.

Critics do point out two possible downsides of the Presidents cap-and-trade proposal:

1. It won’t work.
2. It won’t create jobs.

But that’s not what's important.  What is important is that we have a plan (thank you, Underpants Gnomes):

You know that feeling you have right now?  That’s what it feels like to finally have confidence in the folks in Washington.

J.