The bankers and traders of Wall Street and London should not be its main beneficiaries.
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To be sure, the Waxman-Markey legislation tries to avoid the trillion-dollar tax implications of a 100 percent auction by temporarily seeking to provide “free” allowances to coal and natural gas customers. But these allowances will have to be auctioned to the emitters anyway, and there is no guarantee that the proceeds will actually get into the hands of those who have to pay the tax.
Over time, in any event, the system would revert to a 100 percent auction to provide trillions of dollars in revenues for unrelated budget proposals (and triggering protectionist import tariffs to curb trade with nations that have not imposed the same tax). One can understand the desire for deficit-reduction revenues. But they should not come out of a climate change program, which will be costly even without auctions and the success of which depends on the cap reduction level, not on the revenues collected. (Indeed, one group that has pushed for an auction, U.S. Climate Action Partnership, stresses that emission reductions under cap and trade are the same whether an auction is used or not.)
The superior efficiency of emission trading markets has been demonstrated over and over again. But the efficient reduction of carbon emissions need not depend on the levy of a huge tax or the establishment of the biggest commodities market ever created, and benefits of the trading should go to the public, not Wall Street or London.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?