Cap and Tax

The cap and trade system being debated in Congress, and favored by all the Presidential candidates still standing, is a true abomination. Robert Samuelson explains it best.

If you ever need convincing that Public Choice Theory is real, look no further than this example. This will allow politicians to direct huge amounts of business to their campaign supporters, claim to be doing something for the common good, and claim that they didn’t raise taxes. Of course, this depends upon the public remaining mostly uninformed and unaware. I’d say the odds looks pretty good.

UPDATE: At lease one Senator seems to understand the problem!

The only good new is this: if Cap and Tax proceeds, there’s piles of money to be made by savvy investors. It’s as easy to make money from bad policy as from good policy.

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