Seriously, is Barack Obama insane here or has he just been misreported?
The heart of Sen. Obama\’s spending program is his plan to spend $15 billion a year for 10 years on energy technology. It would be funded by revenue collected from a separate Obama proposal to cap greenhouse emissions through a system of trading pollution permits. Sen. Obama would auction those permits to producers of carbon dioxide, such as electric utilities, and figures the sales would yield about $100 billion a year. Most of that would go to consumers as rebates on utility bills, he said.
OK, cap and trade, auction all permits, very good.
But spend the money raised on rebates to energy consumers? WTF?
We\’re going to tax energy at one end of the system then subsidise it at the other?
Use the cash raised to lower other taxes, perhaps, use it to provide a citizen\’s dividend maybe, heck, spend it even.
But subsidise utitlity bills with the money you\’ve just raised by a tax on those utilities?