Friday, November 16, 2012

Carbon tax is economic suicide for state

Sorry, Allan.  Even without the purchasing of carbon credits, the curtailing of carbon dioxide emissions is economic suicide.

The air board, however, has gone beyond what is spelled out in the law by also requiring companies to pay for the ability to emit carbon. The only revenue the Legislature authorized the air board to raise is that needed to administer the carbon reduction program. There is no way to know where the money from this carbon tax increase will be spent because there is no law authorizing it.

Over the past two years, repeated calls for the air board to remove the auction element from their cap-and-trade design fell on deaf ears. We were left with no choice other than to sue.

Our goal is for the air board to create a legal, cost-effective approach. This will protect our competitiveness and enable other states to join us in addressing global climate change. The truly interesting thing about the approach of the air board, by both its own admission and according to a Legislative Analyst's Office report, is that the auction is unnecessary to meet the goals of AB32.

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