The Obama Energy Tax Hike May Not Be Dead

November 19, 2010 06:12

President Obama is prepared to bring his cap and trade scheme back from the dead. Same agenda, different hidden message. Although companies and individuals may not necessarily be trading carbon credits in the future, they will be paying more for energy.

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The Obama Administration is planning to increase prices on fossil fuels through the reduction of subsidies while at the same time raising taxes on fossil fuel companies. The subsidies once used for fossil fuels will then be allocated to “renewable energy projects.”

Renewable energy projects such as wind, solar and ethanol receive on average nearly $12.5 billion a year in tax provisions while oil and gas only receive under $1 billion.

“This idea suggests not trying to remove subsidies so much as to punish companies for what they produce,” Sepp says. “It represents a re-packaging of the whole philosophy behind Cap and Trade which is to ration and punish carbon based energy and reward and promote renewables.”


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