Energy tax has devastating consequences
To the Editor,
After a closed-door process, Representatives Henry Waxman, a California Democrat, and Edward Markey, a Massachusetts Democrat, recently introduced a climate change bill (H.R. 2454), which includes a "cap and trade" provision that is essentially a national energy tax.
As co-chair of the Rural America Solutions Group, I believe rural Americans should fully understand the bill's devastating economic consequences.
Agriculture is a bull's-eye industry for the national energy tax because it is energy-intensive. Whether it's fuel in the tractor, fertilizer for the crops, or delivery of food to the grocery store, agriculture uses a great deal of energy. On average, 65 percent of farmers' operating costs are fuel, electricity, fertilizer, and chemicals so any increase in these costs will devastate their budgets.
Experts predict that this national energy tax will spike energy prices between 15 and 125 percent - forcing local producers in your community to pay more for seed, equipment, machinery, steel, and other supplies.
The national energy tax will also target small businesses and rural jobs. Even a recent White House memo warned that the regulation of greenhouse gases such as carbon dioxide "is likely to have serious economic consequences" for businesses and "small communities."
Unlike Waxman's Hollywood constituents, rural Americans have a different way of life. They travel 25 percent more miles than urban households, and spend 58 percent more on fuel than urban residents as a percentage of their income. And while rural electric cooperatives average around seven customers per mile, other utilities average 35 customers per mile.
Rural Americans want clean air, clean water and clean land, but they can't afford this national energy tax.
Republicans have a better plan to protect our environment, create new jobs and stimulate our economy. Our all-of-the-above energy plan includes renewable energy sources, such as wind, solar, hydropower, nuclear and biomass, and American-made oil and natural gas.
As the debate continues, we will continue to speak up in Washington, D.C., for rural Americans.
Doc Hastings
Member of Congress
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