President Obama’s budget proposal working itself through Congress right now includes funding from a $600 billion cap and trade energy tax. The plan would place a limit on the amount of carbon emissions that a firm is allowed to produce. They can then sell their rights to carbon to other companies that wish to exceed their limit. Cap and trade increases energy costs by restricting output and raising costs to producers.
On March 31, the Senate voted 89 to 8 for an amendment by Sen. John Thune (R-SD) that would forbid the collection of cap and trade tax dollars if they raised prices on energy for Americans.
On Wednesday, April 1, 67 members of the Senate voted to prevent cap and trade measures from being used to finance health care. Senate Minority Leader Mitch McConnell commented, “an overwhelming majority of the U.S. Senate slammed the door on using the fast track process to jam through a new national energy tax.”