One of the “big” talking points right now is the whole “cap-and-trade” discussion regarding green energy. Recently the GOP was claiming that if enacted, cap-and-trade would cost the average house hold an additional $3,128 per year in increased bills. As a result of this claim by many of the GOP, John Reilly who is one of the MIT Professors who was involved in the study, came forward claiming the GOP was not correct and was misrepresenting his (John Reilly) numbers. Professor Reilly claimed this would only cost the average house hold $215.05 per year (I am sure all of you can absorb that increased cost eh?). This in turn kicked off a media and blogger frenzy ripping the GOP a new one for their faulty fear mongering math. So far, many of you (the 2 1/2 people who read this blog) probably have some vague memory of hearing or reading about this. But, here is what you probably have not read or heard and is rather hard to find reported.
Professor Reilly has admitted that he screwed up his Excel spreadsheet and it would actually cost $800 per year for an average house hold (again, I am sure all of you can absorb that cost too right?). Now, $800 is a far cry from the GOP claim of $3,100 smacks but the story doesn’t end there, it gets even better! Apparently, Professor Reilly believes it will only cost $800 dollars IF companies do not pass on their increased cost (taxes) to their customers – i.e. the companies will eat their loss in revenue. Ya, ask the unemployed, fur lowed and those who have been forced to take pay cuts how well businesses are willing to absorb losses in revenue! He also feels that the GOP should not focus on the increased tax revenue and it’s correlating impact on the economy but should instead focus on Government giving back the tax revenue to all of us, the impacted Americans.
Let’s recap, Professor Reilly’s math is only accurate IF businesses do not pass on their increased costs and IF Government gives back the collected tax revenue. Does anyone else see the flaw in this numb nuts thinking? We are more likely to see the porn industry go out of business then see either one of those options take place. But wait, it gets even better.
According to Professor Reilly, not only would it cost $800 smacks per year per house hold, but if the above assumtions did not become reality, then the actual cost to you and I would be the GOP stated figure of $3,128 PLUS his (Professor Reilly) $800 dollar figure. So if businesses and Government act as they normally do, then all of us could / should see an increase in yearly energy realted expenses to the tune of nearly $4,000!
Now I suppose that since the Obama administration wants to use this energy tax to fund socialized medicine (universal health care), that we should all see our costs break even or go down once we no longer have to pay any health care / insurance costs. I am also confident that neither the Obama administration or any other future administration (GOP or Demecrat) will ever need more revenue to fund socialized medicine beyound the $4,000 per family generated from this energy tax. I don’t know about you, but I don’t intend to hold my breath none…I’m affraid I might pass out.
Here is some follow-up reading:
I’m glad you’re not holding your breath!
Hey, and Ogabama hasn’t even been in office 100 days yet!
Can’t imagine what the next 1400 or so will bring.
You have a safe room yet? LOL