Cap & Trade is a complex subject that the public little understands. That will permit politicians to dispense even more pork, while taxing their way to power.
The idea behind Cap & Trade is to cut down on carbon emission pollution, the type from using fossil fuels. So politicians in charge get to designate which industries get what quotas for emissions with which they can befoul the air.
If the figure you are stuck with is too high by official count, you can buy a credit from someone who is fortunate to have a credit, so you can conform with your government quota. Some industries and firms may be more politically blessed than others.
Then there are fees involved and penalties. That’s where the hidden taxation arises, and accumulates as a giant tax gimmick that will directly and indirectly hit industry and the consumer. The answer to any entrenched statist politician’s dream.
The Chinese and India want nothing to do with it because it destroys economies. New Zealand tried it for a couple of years and quit. The Australians put it on hold after some sober thought. Yet, the Obama administration appears ready for the fiasco.
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