A large source of new revenue contained in the President’s budget is the proceeds from his carbon “cap and trade” tax scheme. This is something he campaigned on, and the quote below is actually over a year old.
Under my plan of a cap and trade system electricity rates would necessarily skyrocket, even, you know, regardless of what I say about whether coal is good or bad, because I’m capping greenhouse gases, coal powered plants, you know, natural gas, you name it, whatever the plants were, whatever the industry was, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.
Over the weekend, members of the Administration explained that the proceeds from the tax would be used to provide a tax cut to 95% of Americans.
Two issues. One, the tax cut was not advertised to the electorate as an offset to other proposed expenses. Two, as the quote above explains, there are many other costs incurred by energy producers, besides the “cap and trade” tax so the money raised will provide only a partial offset at best. (Thank you Yuval Levin at NRO http://corner.nationalreview.com/ )