King: “Cap and Tax” Proposal Will Punish Western Iowa

Thursday, May 14, 2009, 6:45
National
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7 comments

steve-king Liberals on Capitol Hill are currently ironing out the details of so called “cap and trade” legislation. Their plan would impose new energy taxes on the American economy and American consumers to reduce “global warming” emissions.

This proposal would set a limit on how much carbon a company could emit as part of its production process. Any company exceeding the government-mandated limit would be forced to purchase emissions allowances from other companies that do not exceed the limit.

American companies would be forced to comply with these new regulations, while companies in China, India and other countries without “cap and trade” laws would not. This would effectively put American companies at a disadvantage in the international market.

Liberals like the idea of giving the government more control over our economy, but their “cap and trade” plan is nothing more than a national energy tax that will punish job creators and hinder economic growth. A more appropriate title for this bill is “cap and tax” because of the new national energy taxes it would impose.

How much could this plan cost your family?

A recent study looked a similar proposal and estimated that the impact of a “cap and trade” plan would result in $3,128 in higher energy costs for every American household each year. Hardest hit by this energy tax would be low-income families, because they spend a greater portion of their family budget on energy consumption.

In these tough economic times, we are all tightening our belts and cutting back, which is why we must consider what $3,128 is worth to the average Iowa family each year. It is worth around 100 fill-ups at the local gas station for your car’s fifteen gallon fuel tank. It is worth roughly seven years of cell phone service. It is worth more than three years of electricity bills for the average Iowa family.

“Cap and trade” will also disproportionately impact Iowa because the majority of our electricity is produced by coal. This legislation will punish coal producers, and western Iowans could see their electricity bills rise 15 to 30 percent each month, while less coal-dependent states like California and Massachusetts, where the authors of this legislation are from, would see their bills go up only 3 to 9 percent.

Even some Democrats are worried about the effects of a “cap and trade” bill. Late last month, Michigan Democrat John Dingell, the longest serving Representative in the House, voiced his concerns with “cap and trade” legislation. Dingell stated that “nobody in this country realizes that cap and trade is a tax, and it’s a great big one.” Dingell recognizes that this plan will lead to more taxes, fewer jobs and more government intrusion. House Agriculture Chairman Colin Peterson, a Minnesota Democrat, also announced, “I want this message sent back down the street. I will not support any climate change bill. I don’t trust anybody anymore.”

Right now, we need our economy to start moving again. We need all of our businesses – from large corporations to the smallest of small businesses – to have the ability to innovate, grow and hire new workers. I spent 28 years running my own construction company, and when times got tough, the last thing I did was increase my overhead costs. Yet this “cap and trade” bill will do just that.

Liberals are pushing a bill that will raise taxes on all American energy users, cost American workers their jobs and put American companies at an international disadvantage. Instead of tax hikes, we need an all-you-can-create energy plan that includes more drilling, more renewable fuels and more efficiency. The energy sources of the future will not be created through massive tax hikes or new government regulations.

I will oppose any “cap and trade” bill that caps growth and trades American jobs.

Written By Congressman Steve King

Tags: Steve King

About the Author

The Iowa Republican has written 305 stories on this site.

7 Comments on “King: “Cap and Tax” Proposal Will Punish Western Iowa”

Deace voted for Obama wrote on 14 May, 2009, 6:56
King is an awesome congressman. No one understands long term ramifications of proposed legislation better than King. Also, no one can explain it with more clarity. King is a rare jewel.

Cap and trade is a horrible idea and exemplifies just how devoid of economic principles are these modern-day Democrats. They are very, very dangerous.
steve right wrote on 14 May, 2009, 7:01
King has never understood anything in his entire life. Why should anyone trust him now?
Deace voted for Obama wrote on 14 May, 2009, 7:11
Continue to vote for these idiot Democrats at your own peril. Your stupid statement shows you fit right in with the rest of these economic idiots.

So you think King doesn’t know what he’s talking about? Give us your evidence. Show us how this HUGE tax increase proposed by the Zero is going to benefit you–or anyone else.

Why don’t you just stay out of a voting booth.
Timmy wrote on 14 May, 2009, 7:43
Don’t just take the Congressman’s word for it, this is a stupid concept period! If we were really serious about doing something we would be building more nuclear power plants instead of mothballing some we already have(Just curious, what is the current plan for the Duane Arnold plant in Palo?). France figured it out many years ago, today they are roughly at genrating 70% of their power from nuclear. Technology has improved greatly in the past few decades to not only make it more efficient but safer as well. Our navy goes to sea(and under it) using nuclear power. The waste products can be reduced to managable amounts and can be properly stored safely long term. You are exposed to more radiation from your computer monitor than you will ever be from a nuclear plant. We are going to need more power generation and we can’t build enough wind generators to provide it and even if we could the wind doesn’t always blow.
Conservative Demo wrote on 14 May, 2009, 7:48
/Why don’t you just stay out of a voting booth./

Doggone there DV, now yer showing your true stripe and giving a peek into the rethuglican mindset about voters’ rights. How easily you forget that Steve Right has the CONSTITUTIONAL _RIGHT_ to enter a voting booth.

That’s where browsing those treasonous websites inhabited by morons leads you.
Deace voted for Obama wrote on 14 May, 2009, 7:50
Timmy: Stop confusing Democrats with facts. Their brains just don’t have the tolerance to handle it.

Maybe Silence can inform us as to the Democrats’ energy policies. I’m waiting.

I’m sure it will be something about alternative energy. With each passing day there is more evidence that much of this “alternative ” energy cannot live up to it’s hype.

If it’s so good, why does it all need huge taxpayer subsidies. Eventually, the markets will prove if they’re viable or not.
Deace voted for Obama wrote on 14 May, 2009, 7:57
Oh, I fully recognize the fact that all those ignorant of the fact have full constitutional rights to vote. Unfortunately, there is no intelligence test for obtaining the right to vote and I never suggested there was and you know it.

My remark addresses those who NEED to stay out of the voting booth because they are damaging our country.

Consider the ACORN types who don’t have a clue. They are so ignorant they accepted the suggestion that Palin was Obama’s running mate and that Obama was prolife.

It is obvious Steve Wrong has no knowledge of economics or he wouldn’t have said what he said but his vote counts just as much as someone who does know about economics. It is likely Steve’s vote counted twice as much as those who do know about economics because the typical Democrat voter has no problem with voting multiple times. Democrats are notorious for voter fraud. They are scared to death they cannot win legitimately and must resort to fraud.