When asked by Chris Wallace if Cap & Trade legislation would hurt citizens because companies will simply pass imposed costs to consumers, Maryland Congress Chris Van Hollen’s answer displayed such financial stupidity that there’s no wonder America is submerged in trillions of dollars in debt.
Paraphrasing Hollen, he said, “No, consumers would not be hurt, because even if the money we charge the companies is passed to consumers, we’re going to create a fund with the money we collect and give it back to the consumers.”
Let’s break down the stupidity.
On Day 1, Congress will charge Acme Energy Company $100. Later that same day, Acme Energy Company will charge its customers $100 more. The increase cost to consumers is instant.
Many month’s later, Congress will take that $100 and form some sort of regulatory body to manage the Cap & Trade money collected. Just as with any other governmental endeavor, the administrative costs will sap at least 30 percent of the $100, leaving only $70. Now, to benefit from this money, people will have to be in a “preferred class” of people; no rich/middle-class whites are getting any of this money for sure. So, if you’re one of the lucky ones, you might see some money. But, again, it will only be a fraction of what it costs you initially.
Furthermore, Congress will tell you that you’ll get this reduced portion of your money back by qualifying for some sort of a tax credit that you can apply for the following year at tax time. But, this ignores the principle of the time value of money. We have to give up $100 now, to get a fraction of the costs back over a year later.
It’s basic grade school math that Cap & Trade being about helping people is a load of crap.
Acme Energy Company gets $100 more and puts this money in a bank making interest. We have to pay $100 more of our money that could be in a bank making interest, but instead our government uses this money to fund another bureaucracy that will forever expand and cost even more of our money to manage down the road. This will mean that as time goes on we will be able to claim less of this money come tax time.
Ask yourself this; with all the money the government collects, will they solve global warming? Just like making cigarettes totally illegal, if they cured global warming, the tax money would stop coming in now wouldn’t it?
No, their goal is not to cure global warming; it’s to collect from it, and blame someone else for the financial robbery.
This is an exclusive article for The Terry Anderson Radio Show.
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I wonder if this Congressman knows enough to come in out of the rain?? Whew, that is major league stupid. I hope his wife handles the checkbook in that family.
I heard a state representative say something like this a few years ago. He was proposing some new expensive program to the media and they were asking him questions. One newsperson said, “this will be expensive, this will cost the taxpayer”. The state rep says, “no, no, this will not cost the taxpayer, 1/3 of the money will come from the federal gov’t, 1/3 from the state and the other 1/3 from another fund”. I thought, is this idiot really saying this?
All politicians should be required to have economics degrees!
Either that or pass a Dave Ramsey exam.