Cap And Tax

Watch out when sweeping new legislation comes with a "bipartisan" label. Usually it's a bad, repackaged measure undeserving of passage. Case in point: the new energy bill. Sens. John Kerry, D-Mass., Joe Lieberman, I-Conn., and Lindsey Graham, R-S.C., are working feverishly to craft a "tripartisan" approach for a new cap-and-trade bill. The goal reportedly is to slash carbon emissions 17% by 2020 and 80% by 2050. Unlike the past efforts, which relied on a one-size-fits-all approach, this one will have separate caps on carbon output for manufacturers and utilities. It also boosts offshore drilling and nuclear power. Even business groups, notably the U.S. Chamber of Commerce, have made favorable noises about the bill. But don't be fooled. This will be another massive tax on consumers and industry. Industry foes, of course, will be bought off with rebates, subsidies, protectionist rules and other goodies. You'll be left holding the bag...more