New Cap and Trade Bill is More of the Same from Washington

Like a weed that just won't die, the Senate recently rolled out its latest version of climate change legislation. You may recall the House passed its cap and trade bill last year – against my strong disapproval.

 

Unfortunately, the provisions in the Senate bill still amount to nothing more than a national energy tax. They will hurt small businesses, farmers and rural Americans in particular.

 

Farmers rely heavily on energy. On average, 65 percent of farmers' variable input costs are fuel, electricity, fertilizer, and chemicals. All of these resources will be more expensive under both the House and Senate versions of this bill. There is simply no way for farmers to pass all the additional costs on to consumers. Therefore, they will have to absorb most of them.

 

The increased costs imposed by this bill will make it even harder for small businesses to make ends meet. They will be hurt by the same fuel and electricity price increases as the agricultural sector. Many small businesses will shed jobs to save money or simply close up shop altogether.

 

This legislation all but guarantees American jobs will head overseas to countries like China and India. At the same time, all Americans will pay more for virtually everything they buy.