Katie Pavlich

Cap and trade may not be dead. President Obama plans to be hiding an energy price hike in the tax code.

After the 2010 midterm elections, President Obama said in a press conference that the liberal shellacking wasn’t about his policies, but was simply the failure of communication about his policies that caused massive Congressional turn over.

Now, President Obama is prepared to bring his cap and trade scheme back from the dead. Same agenda, different hidden message.

Senator-elect Joe Manchin of West Virginia shot the current Cap and Trade bill with a rifle in a campaign ad, assuring constituents he would not be voting for the legislation in the next Congress and came out this week with a statement saying Senate Majority Leader Harry Reid would not be pushing it through during the lame duck session or in the next Congress.

"I got his commitment that cap and trade will definitely not be on the agenda and won’t be on the agenda during the next Congress,” Manchin told reporters following his swearing-in. “I have a deep commitment and a personal commitment from him that cap and trade is dead.”

Although companies and individuals may not necessarily be trading carbon credits in the future, they will be paying more for energy.

“There is a renewed commitment to phasing out what are called fossil fuel subsidies in hopes that there will be a reduction in green house gases as a result… there would be less use of carbon based energy absent the subsidies,” Pete Sepp, Executive Vice President of the National Tax Payers Union says.

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."

The Joint Committee on Taxation data already shows a definite bias in the tax code in favor of renewable energy. 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.

Usually, fewer government subsidies are a good thing, but in this case, by favoring and supporting renewable energy over fossil fuels, the government is manipulating the market through the tax code. In the free market, the most cost-efficient energy would win, but the government is planning to re-allocate money taken from the reduction of fossil fuel subsidies and placing it into subsidies and tax breaks for renewable energy; forcing fossil fuel companies to compete with government-picked winners.


Katie Pavlich

Katie Pavlich is the News Editor at Townhall.com. Follow her on Twitter @katiepavlich. She is a New York Times Best Selling author. Her new book Assault and Flattery: The Truth About the Left and Their War on Women, will be published on July 8, 2014.

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Author Photo credit: Jensen Sutta Photography