Cap and Spend

As the Senate opens debate on its mammoth carbon regulation program this week, the phrase of the hour is “cap and trade.” This sounds innocuous enough. But anyone who looks at the legislative details will quickly see that a better description is cap and spend. This is easily the largest income redistribution scheme since the income tax. …All of this helps explain why so many in Congress are so enamored of “doing something” about global warming. They would lay claim to a vast new chunk of the private economy and enhance their own political power.

The WSJ editorial outlines what cap and trade means in the real world of politicians. The politicians don’t like the simple, transparent, effective revenue-neutral carbon tax — for the obvious reason that it prevents them from serving out favors to their favorites. More…