Scrap Cap and Trade

Under the guise of regulating industries that generate greenhouse gases, the Obama administration is aggressively pushing an approach called, "Cap and Trade".

The idea is to limit the amount of emissions a company produces. A noble idea. The problem is the method Washington is seeking to implement.

The plan being promoted would require companies to purchase emission credits should they exceed their capped emission limit. The Congressional Budget Office is projecting revenues generated from this proposed bill at a minimum of $50 billion per year, and could quite easily reach $300 billion.

With those kind of revenue dollars at stake, look for the Obama administration to push hard for this legislation. They will then be able to use this backdoor tax on business to pursue their other societal agendas.

The greater concern with this type of legislation is that it will add cost to doing business for any company involved with fossil fuels. Although there appears to be signs of economic recovery, the economy is still stagnant and experiencing lots of pain. American companies will find themselves at a disadvantage as it will become necessary to pass on these additional costs to consumers.

Companies consuming fossil fuels will be more than willing to adapt to new energy sources when the market place provides the new alternatives. Until viable new technologies emerge, it is best that Washington not do further damage to a highly fragile economy by enacting "Cap and Trade".