Monday, March 8, 2010

Obama's CAP & TAX - Not About Energy

President Obama's CAP & TAX legislation has nothing to do with energy independence. It is instead just another big government Socialist Scheme designed to raise the cost of carbon based energy, generating more taxes for the government and result in more government control over our lives. It really is that simple. Obama like Big Brother in Orwell's 1984 knows best what is right for each of us. Obama wants to control the cars we drive, the homes we live in, the food we eat and in general all aspects of our lives. Rather than provide additional tax incentives that would lead to energy independence, Obama wants to raise the cost of anything and everything we need to maintain a high standard of living to change the way we live. In essence, Obama wants us to lower our standard of living as part of his redistribution of income Socialist Scheme.

And, CAP & TAX will not result in energy independence because it is not in keeping with Economics 101. If CAP & TAX is enacted by the Democrat Socialists controlled Congress and signed into law by the President, millions of jobs will be lost and energy cost will go up for every American. CAP & TAX will be a disaster for the American economy. When ever government attempts to pick winners and losers in this case "green technologies" that are not economically feasible today and would require substantial subsidies at tax payer expense, rather than develop existing and proven sources of energy like nuclear, clean coal, natural gas and oil, it distorts the economy.

Ethanol is a case in point. Ethanol, which is added to gasoline, requires huge government subsidies because it is not cost effective as a fuel source. It actually takes more energy to produce Ethanol than it saves. Ethanol is made from corn products, which is great for American farmers; but very bad for people around the world. Corn is a primary feed stock for various domesticated animals that are a major food source around the world. As a result of subsidized Ethanol, the price of corn is higher than it should be and as such, the cost of meat and poultry are higher than would otherwise be the case. So not only are we paying to subsidize Ethanol, we are paying higher food prices because of it. This is tax money that could be used to create infrastructure jobs in the US, or pay down the debt. If food was less expensive, the money we save could be used to make other purchases, which would also create jobs. So, the law of unintended consequences is in play whenever the government artificially subsidizes any industry.

Global Warming, the supposed reason behind the need for CAP & TAX, is based on faulty science. There has in fact been Global Cooling since 1998. That aside, we all want clean air and water. However, we need a common sense 50 year plan that will result in real energy independence without destroying our economy. We need to develop current energy sources as a bridge to the future. Green technologies will replace carbon based fuels; but it will take time to make these newer technologies like wind, solar, bio fuels etc. economically feasible. Government should provide tax incentives to develop these new green technologies; but not impose additional taxes, or impediments to developing current energy sources. The fact is, we need both to occur.

It is time for the grown up's to take control of the federal government. In 2010 and 2012, we must elect common sense Conservatives that support limited government, lower taxes and regulations, a balanced budget, term limits, a strong national defense, real energy independence, the right to bear arms, the sanctity of life and family values. This platform is the key to American greatness and our economic development. We must take back our country in 2010 and 2012. We can do it. We must do it.

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