Heading that list has to be the legislation from Sen. Sheldon Whitehouse, Rhode Island Democrat, who has apparently taken a moment or two away from both of his all-White (or just about all-White) yacht clubs and decided that what the nation really needs is higher energy prices.
His legislation would impose a carbon border adjustment tax, which sounds imposing, but is actually pretty simple. If the United States imports energy that has the potential to create greater emissions of greenhouse gases (like carbon dioxide) than our own domestic energy, a tax would be imposed on those imports. The same mechanism works for finished goods. If their manufacture results in higher levels of greenhouse gases, a tax that attempts to capture the value of the difference in greenhouse gases emitted would be imposed on the goods.
There are a couple of problems with this.
Most immediately and destructively, it would create a backdoor tax on energy. Everything made, everything transported and everything that keeps people warm or provides electricity invariably involves the use of natural gas, oil or coal. No matter where or when it is imposed, a “carbon dioxide” tax is a tax on energy.
Make no mistake. Consumers would pay this tax. Businesses would just pass along the cost. To his great credit, Mr. Whitehouse recognizes that our trade commitments require that an import tax on carbon dioxide would obligate the U.S. to impose a tax on our own domestically produced energy and goods.
www.washingtontimes.com
His legislation would impose a carbon border adjustment tax, which sounds imposing, but is actually pretty simple. If the United States imports energy that has the potential to create greater emissions of greenhouse gases (like carbon dioxide) than our own domestic energy, a tax would be imposed on those imports. The same mechanism works for finished goods. If their manufacture results in higher levels of greenhouse gases, a tax that attempts to capture the value of the difference in greenhouse gases emitted would be imposed on the goods.
There are a couple of problems with this.
Most immediately and destructively, it would create a backdoor tax on energy. Everything made, everything transported and everything that keeps people warm or provides electricity invariably involves the use of natural gas, oil or coal. No matter where or when it is imposed, a “carbon dioxide” tax is a tax on energy.
Make no mistake. Consumers would pay this tax. Businesses would just pass along the cost. To his great credit, Mr. Whitehouse recognizes that our trade commitments require that an import tax on carbon dioxide would obligate the U.S. to impose a tax on our own domestically produced energy and goods.
Desperate Democrats start pressing for energy taxes
Everything made, everything transported and everything that keeps people warm or provides electricity invariably involves the use of natural gas, oil or coal. No matter where or when it is imposed, a “carbon dioxide” tax is a tax on energy.
