‘Cap and tax’ scheme will hit us hard
The last thing Wisconsin families need is higher energy prices. But the House passed H.R. 2454, the American Clean Energy and Security Act, which would do just that. By requiring all energy producers to buy expensive government permits in order to produce energy from certain natural resources or to produce certain goods such as steel or cement, cold-weather states such as Wisconsin will take direct hits in higher energy costs. As a result, I voted against this measure.
While this bill’s proponents promise new “green” jobs and less reliance on oil, they ignore what American taxpayers already pay to support cleaner energy production. Taxpayers already provide a nearly 40 percent subsidy rate for solar and wind producers; $15 billion per year for other renewable energy sources and conservation programs; $24 billion for the energy-related portion of the Department of Energy’s budget; and $39 billion to the so-called “stimulus” bill for other energy projects.
But they claim we need to spend more. Their plan’s “cap and tax” scheme claims it can slow global warming by raising the cost of fossil fuels, which provide 86 percent of U.S. energy. The bill’s authors tried to reduce its impact on households through complicated allowances, tax credits and rebates; but the fact remains: this plan will raise the cost of energy by $1 trillion over the next 10 years—12 times our current energy spending. That cost will fall on American families through higher energy prices, higher taxes, more government debt or a combination of all three.
It will cost taxpayers on average $3,000 per year and raise taxes by more than $840 billion. The impact on Wisconsin will be especially severe. Estimates from the Congressional Budget Office and the Energy Information Administration predict Wisconsin families alone will shoulder an extra $230 million in energy costs as a consequence of this bill. The 1st District of Wisconsin is predicted to lose roughly 3,000 jobs.
We are already suffering the closures or pending closures of major car factories in Janesville, Kenosha and Oak Creek. Racine’s unemployment rate recently broke 10 percent. It is unacceptable for Congress to consider legislation that would drive out even more American jobs and force businesses to close down.
Meanwhile, some studies show “cap and tax” might move global temperatures a fraction of a degree by the end of this century—a shift so small that it might be impossible to measure. But for every ton of carbon we avoid, China, India and Russia will produce many more, putting the U.S. economy at a clear competitive disadvantage.
A better approach would be to make energy cheaper, not more expensive; to facilitate an economy operating at full potential, not below it; to encourage domestic production of oil and gas in an environmentally responsible manner, not demonize it; and to encourage all forms of clean energy, including emissions-free nuclear power.
These are the common-sense principles for creating a cleaner environment and a stronger economy in the 21st century that I will continue to support.
Rep. Paul Ryan, R-Janesville, serves Wisconsin’s 1st Congressional District. Readers can reach him through his Janesville Constituent Services Center, 20 S. Main St., Suite 10, Janesville, WI 53545; Washington, D.C., phone is (202) 225-3031.

Jul 4, 2009 at 12:11 p.m.
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Panama red. Your bumper sticker Mc mentality overlooks common sense. Paul Ryan is correct.
Jul 4, 2009 at 11:57 a.m.
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The sky is falling! The sky is falling!
Thank you Mr Ryan for alerting us all.
Myyyyyyy Hero.
Jul 4, 2009 at 11:41 a.m.
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I wonder whats going to happen in another 5,000-10,000 years when we're headed for another ice age. "Hey everyone, we're going to tax you if you don't use carbon based energy sources"
Jul 4, 2009 at 11:28 a.m.
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Isn't it now called climate change? Maybe the name changed yet again.
Jul 3, 2009 at 8:11 p.m.
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I know we need to help planet against global warming..but If you tax these big companies they will find ways around it such as importing more oil from foreign countries(increasing our dependence on foreign oil) USA companies will farm jobs out to other countries to reduce their costs because of this tax..which increases USA unemployment and in turn will also increase carbon emissions in places like China and Asia(because these countries dont have tax laws on carbon emisions)..which will ultimetly increase global warming. I am all for fixing the planet...but there has to be a better way!
Jul 3, 2009 at 4:50 p.m.
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"about $175 per household."
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This is where the number games don't match up. They also state that gasoline prices will go up .77 cents a gallon. If the average American drives 12,000 mile per year with a car getting 30 miles per gallon their yearly gas bill will go up $308.00 this on top of the other linked report; figure your own results based on you car(s) and miles driven. http://cboblog.cbo.gov/?p=306
The unknown costs (guesses) are what additional costs are manufactures/producers going to pass to consumers that are unforeseen? It does not take long to get to numbers well beyond initial estimates by the administration and congress.
Jul 3, 2009 at 3:23 p.m.
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Here are some other numbers taken from the CBO Report (thanks to RAF for providing a link):
"Overall net costs would average 0.2 percent of households’ after-tax income."
..."the net economywide cost of the GHG cap-and-trade program would be about $22 billion—or about $175 per household."
For the record, these figures were taken from paragraphs full of more detailed information but my point is these numbers don't have the shock value of Mr. Ryan's chosen numbers. This bill does two things. #1) Consumers who use more energy to heat and cool their homes will pay a greater share of the tax than those who use less energy. #2) Energy providers that incorporate more cleaner forms of energy generation and pay less in pollution tax SHOULD pass those savings on to consumers through lower rates. I'll bet those of you who you built those 3,500 sq ft McMansions without any thought of energy conservation are happy now!! Progressive taxes of this nature (based on consumption and levels of pollution emitted) are a more equitable manner of covering the costs for cleaning up our environment. Keep eating those mercury laden fish and breathe deep that smog filled air whoanellie and it will be over soon. Enjoy!
Jul 3, 2009 at 11:24 a.m.
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Here is the CBO numbers for those that want them. http://www.cbo.gov/ftpdocs/103xx/doc1032...
Jul 3, 2009 at 11:02 a.m.
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"Mr. Ryan is not telling us the whole story, only the one he wants us to hear."
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I think you hit the nail on the head.
Jul 3, 2009 at 10:30 a.m.
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I was just up north WI and saw alot of uninhabited woods! I believe that is the answer, All the greenies go into the woods and live off the land. Don't use any electricity or plumbing and don't own a car. There is enough of them that it would solve this whole " so called problem" with the environment! Stop making us pay for your out of control ideas and just move out! Let me live my life and you live yours, preferably in the woods where I don't have to hear you!!!!!
Jul 3, 2009 at 9:27 a.m.
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I know WHERE he got most of his numbers, RAF. But what I'm curious about is his method of calculation. Based on the numbers Mr. Ryan is tossing around, energy generators in the State of WI must produce prodigious amounts of pollution. The cap and trade is designed to encourage energy generators to reduce the amount of pollution they emit. Those polluting over the cap pay more, those whose pollution levels fall below the cap pay less. And, if I'm not mistaken, generators that obtain most of their energy from cleaner renewable sources could even make money, by selling "pollution shares". Mr. Ryan is not telling us the whole story, only the one he wants us to hear.
On matters of Health Care and Energy Reform, two VERY important issues, the Republicans have not been able to provide ONE SINGLE bit of evidence that they are able to formulate a plan to make the necessary changes. This country can't move forward unless those two issues are dealt with and the Republican plan to simply tweak the existing systems already in place is NOT going to cut it.
Jul 3, 2009 at 12:16 a.m.
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"If we keep this guy in office..."
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The only way to toss them out is term limits. Until the voters start to demand it nothing will change; IMHO it will only get worse if we don't have term limits.
Jul 3, 2009 at 12:14 a.m.
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"Mr. Ryan starts out by telling us how much the “cap and trade” will cost us. He never gives us a clue as to how he arrives at those numbers."
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Your answer was easy to find...the second sentence of the article and from the congressional budget office.
Jul 2, 2009 at 11:19 p.m.
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Mr. Ryan starts out by telling us how much the “cap and trade” will cost us. He never gives us a clue as to how he arrives at those numbers. Perhaps they just sounded really good. Then, as a solution, he offers this: “A better approach would be to make energy cheaper, not more expensive; to facilitate an economy operating at full potential, not below it; to encourage domestic production of oil and gas in an environmentally responsible manner, not demonize it; and to encourage all forms of clean energy, including emissions-free nuclear power.”
“Make energy cheaper.” How has that been working out for us so far. “facilitate an economy operating at full potential” Hey, now why hasn’t Obama thought of that yet. I bet Mr. Ryan will submit his plan to get the economy operating at full potential to Mr. Obama first thing Monday morning. “…encourage domestic production of oil and gas (here’s the kicker) in an environmentally responsible manner” Now if that isn’t a loaded statement. What’s his idea of responsible; whatever we spill we clean up?, make sure you replace your divot? Does he plan to “encourage” domestic production with more subsidies? Then he finishes with this declaration; “These are the common-sense principles for creating a cleaner environment and a stronger economy in the 21st century that I will continue to support.” Basically he’s saying the status quo is working just fine. No need to change anything here. We’re good, just keep the oil flowing. We'll let the next generation figure out this mess. News Flash Mr. Ryan. Step up and address the problem head on instead of acting like a worm trying to find the easy way out.
If we keep this guy in office we had all better start learning how to speak Arabic and Chinese!
Jul 2, 2009 at 10:56 p.m.
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I do care about the environment, I do care about climate change, but I'm sorry, every time a Paul Krugman writes a column in the New York Times about how MIT scientists say that climate change will be the end of the world, other respected scientists say "hold on a minute". And I don't mean some hack professor, I mean well a well respected physicist from Princeton, a Nobel prize winner from Norway, Japanese scientists, US meteoroligists, etc. Please see the following link:
http://online.wsj.com/article/SB12459750...
Rep. Ryan didn't pull the economics of his piece out of the air, they came from the Congressional Budget Office and the Energy Information Administration, not exactly partisan organizations. The cap and trade bill is about the most frightening legislation I have ever seen, and I fear the economic effects will be felt for many, many years. Meanwhile, there is no assurance it will do ANY good for the climate, but again we won't know that for decades either. Meanwhile, countries in Europe such as Spain that have attempted Cap and Trade type legislation have actually had emissions RISE in the years after such legislation passed.
One more thing: to AndrewJackson: check your facts about the woods. There are more trees in North America today than there were when Columbus landed. Sorry.
Jul 2, 2009 at 9:41 p.m.
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Call Your senators and tell them NO WAY! See You all at the T.E.A. Party on Saturday morning at the Post Office Lots of people will be there Don't be tardy for the party!
Jul 2, 2009 at 9:31 p.m.
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Cap and Trade is a Burden tax on every American citizen and business. From goods to services, home sales and excessive gas tax it just gets worse as you read it. A home in Wisconsin would be forced to comply with California standards and have to be inspected by a federal inspector before you can buy or sell. A Major Government invasion of every Americans rights not to mention the loss of 2.5 million jobs per year sent to China, Canada, Mexico etc.. Before you praise it..read it. It is Tyranny. Not to mention NOBODY IN CONGRESS READ IT BEFORE THEY SIGNED IT..AGAIN. Look it up on Youtube C-span it is shocking!
Jul 2, 2009 at 9:10 p.m.
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Sadly, Ryan does not provide all of the costs associated with pollution so his numbers are not accurate. He also fails to mention the costs of global warming such as rising ocean levels. He is typical of Republicans, they lack the ability to see the big picture and dumb everything down to the tax label. Cap and trade is a market solution to placing a value on polluting.
Jul 2, 2009 at 7:55 p.m.
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I already set this to many midwest "letters to the editor". Lets hope for all our sakes it fails.
The House of Representatives passed it. The senate is about to vote on it. And Americans who know about it are holding their breath. It is called “Cap and Trade.” If passed by both houses in Washington Obama has already said he wants to sign it into law. What is it? Basically it is a MASSIVE ENERGY TAX. The main idea is to cut back on our output of greenhouse gasses. Jobs will be killed in America and will end up sending them to countries like India and China because those countries won’t be limited by “Cap and Trade.”. President Obama said it will cause electricity bills to skyrocket.
Remember when gas prices were at $4 a gallon, politicians in both parties were tripping over themselves to offer plans to reduce them. One year later, the Democrats are pushing through legislation that will cause them to go back up with “Cap & Trade”.
“Cap and Trade” will make you choose between staying warm in winter or having enough food for your families. Senior citizens, the poor, and the unemployed will be hurt the worst. It will cost American families an average additional $3,000 a year in more taxes. If this wasn’t bad enough, fraud and corruption would be hard to detect and control. Contact your senator and let them know - congressional arm-twisting and lobbyists did not put them in office - you did. Remind them of that fact. And tell them to vote NO on "Cap and Trade".
Jul 2, 2009 at 7:29 p.m.
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dub, he is not raising taxes. It's the old bait and switch routine
Jul 2, 2009 at 7:14 p.m.
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Americans have "paid" to subsidize the oil and gas industry as well. We don't now, and never have paid the "true" cost of gas at the pump.
We also subsidize the agribusiness conglomerates shovel in the ethanol as fast as we can, never mind it's a waste of money as well, right?
Boy, we painted ourselves in a nice corner didn't we? Make energy cheaper! No, we need to use less and be more conservative, something we should have done back when the Janesville plant was pumping out the Tahoes and gas was $1.30 a gallon, but that gets in the way of "progess".
Clean coal? Please, stop...my ribs are aching because I'm laughing so ...much.
1. Nuclear power is needed.
2. Wind power is needed.
3. Producing vehicles that use less fossil fuels are needed.
The sad state is that we have become so reliant on fossil fuels, any change is going to be painful. Is it worth it? I believe so, Paul Ryan doesn't.
Jul 2, 2009 at 7:10 p.m.
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A-Jackson, doesn't sound to me like YOU hired Mr. Ryan to work for you.
Jul 2, 2009 at 5:19 p.m.
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Thank you Congressman Ryan for trying to open some peoples eyes.
How about that President of ours. Lying right to your willing faces. No raising taxes, what a LIAR.
Jul 2, 2009 at 4:33 p.m.
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That's right. More help for the poor----only that will be us. Who is going to be paying for the poor retired baby boomers? They are supposed to equal 1/2 the population some year soon.
We are in a real pickle.
Jul 2, 2009 at 4:28 p.m.
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Is the solution he proposes at the end the same one we have been hearing since the oil shortage in the 70's? But we are sure we are not just being bamboozled by the oil companies right? I mean those companies post the largest profists of any company of any time in all of history but all we get from this guy is more of the "common sense" solutions that we have been hearing about for decades.
Jul 2, 2009 at 4:20 p.m.
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Hannah - That's what I was wondering also. Look at all the people that already cannot pay their energy bills in the winter. For those of us that do, will it go up even higher to off-set the costs of more people not paying?
Jul 2, 2009 at 3:51 p.m.
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The rising cost of energy and the related problems of environmental issues started in the early 70's for crying out loud. Don't you get it? We have to look for alternative sources ASAP. Hold on, NEWSFLASH, It was just reported that The Washington Post is in bed with certain lobbyists! God, I have a sick feeling in my stomach. Our only line of defense from the crooked, money grubbing politicians has now been sacrificed. The woods that whoanellie was talking about are going to be overflowing soon. Oh, thats right, we burned most of them up in the 17-1800's!
Jul 2, 2009 at 3:02 p.m.
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“People are so clueless as to what we are getting ourselves in to.”
Very well put whoanellie, but you shouldn’t be so hard on yourself and others like you that believe we live in a never, never land where we can burn all the toxic material we want without consequence. I agree, that IS cluless. Fish are unsafe to eat due to high levels of mercury poisoning; warnings are given to stay indoors and avoid going outside due to poor air quality! Who’s going to foot the bill to clean up our environment from the poison infiltrating our plants, animals, water, land and air? Some environmental damage CAN’T be reversed, no matter the cost! Maybe you enjoy living in your own filth but I would rather live in a cleaner environment. This isn’t some “scheme” as Ryan puts it. This is the TRUE cost of using nuclear energy and burning fossil fuels. If you want to compare the expense of using fossil fuels to generate energy versus renewable energy sources, then let’s include all the costs, not simply the cost of the commodity. Our generation is just now beginning to pay the price of energy choices made by past generations. We, as consumers, are complicit in the poisoning of our earth and its time we take responsibility by making better choices when it comes to both generating and consuming energy. Only then will we be serving our best interests.
Jul 2, 2009 at 11:44 a.m.
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I agree with you congressman Ryan! I'm VERY glad you didn't vote for this. people are so clueless as to what we are getting ourselves in to. We already are the best country in the use of our resouces. Even if we did reduce back more, which is extremely costly, that doesn't stop China and other countries who are worse by a long shot than we are.I've been taxed enough already!! Why don't some of you greenies go live in the woods with no electricity no plumbing and no car. That would take care of what you think is the problem.What about good ole Al Gore who has that humongus house and private plane too? kind of hypocritical don't ya think??!! Congressman Ryan has our best interest at heart and I would vote for him again and again!!!!
Jul 2, 2009 at 10:13 a.m.
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Gotta wonder how well his campaign pockets were lined by oil and natural gas interests. Absolutely no ideas of his own but he sure bashes everyone else. That's right, let's just keep burning everything in sight Paul, some people can't breath now! Don't forget to tell the public about the subsidy rates for oil and gas production, the fees that the oil companies pay us for the privilege of drilling are a embarrassing joke. Why don't you change your M.O. to what we actually hired you to do, work for US, go after some of the enormous profits that they have been stealing from US and put MORE money into the subsidizing of green energy. Don't feel you have to answer, I didn't contibute any money.Any more babble and doublespeak this early today just might push me over the edge.
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