Amid so much other good news—13.3% tax rate, liberal supermajority—Californians will also be overjoyed to know that this week the state's new cap-and-trade tax gets underway. Liberals are counting on this to raise billions in new revenue, as if it won't drive more jobs out of the state. The state's 350 largest industrial operators will bid for the government-invented "rights" to emit carbon. Revenue from these auctions flow to the state.The state Legislative Analyst's Office predicts the auctions will raise between $660 million and $3 billion this year and up to $14 billion in 2015 as the emissions cap tightens and prices soar. That's a big pot of change if you're broke. Although the 2006 law requires that auction proceeds be spent on reducing greenhouse gases, liberals are saying Democrats should use their new supermajority to treat the cash as general tax revenue.This assumes the money ever materializes. A study for the California Manufacturers & Technology Association this year estimates the new law will cost state and local governments between $21 billion and $39 billion in revenue due to job losses in the hundreds of thousands and 5.6% slower economic growth by 2020. http://online.wsj.com/article/SB1000142412788732489410457811...---NOt to worry...those big nasty carbon emitting companies must fork up the cash!....tens of billions...more than tens of billions.The libs have now paraded all their pet projects, the public sector unions are lining up for their share of the expected revenue, the academics are demanding their cuts, the teacher unions are all lined up for more raises and benefits......That money will be spent 300%...before it ever is received and most of the projections will fall absolutely flat as carbon emitters flee the state. Worse, it is the CA folks who will pay all the carbon taxes in much higher product and service costs, in higher utility costs. Corporations never pay taxes - they just pass them on to the consumer. Ouch!Truly amazing......watching CA circle the drain...It's money from 'heaven'......falling into the libs hands.....heh heh....oh, wait..it was supposed to be used to reduce greenhouse gases!...well, that can wait. We need to spend 'for the children'....t.t.
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