By Michael Williams
Part 5: Getting more expensive to put lipstick on a pig
NOTE: The U.S. House passed the cap and trade legislation on Friday. It now goes to the U.S. Senate where it is expected to have a difficult road.
Warren Buffett when talking about the Waxman-Markey cap and trade bill says simply Its a tax".
Entities as varied as the National Black Chamber of Commerce The Brookings Institution and the Heritage Foundation agree cap and trade will reduce national GDP eliminate jobs and lighten family wallets.
And Texas Comptroller Susan Combs estimates the typical Texas family (3.4 members) could expect to spend up to an additional $1136 on medicine food clothes and other household goods and services over the next year if cap and trade passes.
The price of everything from cell phones diapers aspirin and lipstick will rise because of increased production costs. As a regressive tax this will disproportionately affect single moms the poor and minorities.
As the second most populous state in the union and because of our high energy-intensity as the energy capital of the country the comptroller also concludes the current plan to implement mandatory emissions caps will weigh far more on Texas than other regions of the country".
Take for instance agriculture.
Texas is the number three agricultural exporting state in the nation providing jobs to $1.7 million. In 2007 cash receipts from the Texas agriculture industry totaled $19.9 billion creating an impact of $100 billion for the states economy.
As proposed cap and trade could impact more than 3800 Texas farms 28000 beef cattle operations and 640 dairies. For Texas cotton gins alone the estimated cost of permitting is pegged at more than $8.5 million for 248 relatively small facilities. CO2 regulations will also increase outlays for all Texas farms producers and processors for things like equipment installations irrigation fertilizer and electricity.
The regulations will also have a negative impact on the rural communities in which many of these businesses operate.
http://www.williamsfortexas.com/posts/18
