Bailout Watch 530: CO2 Scheme Becomes Detroit Handout?
The Detroit News reports that Michigan’s congressional delegation has secured an agreement with House Democrats that could send three percent of the revenue from carbon emissions permits to American automakers starting in 2012. That would amount to billions of dollars every year, says DetN, and that’s not all. The new compromise also includes changes to carbon-cap proposals that “could ease the impact on states such as Michigan that rely heavily on coal for electricity generation.”
The Democrats still haven’t determined how the three percent CO2 rebate would be divided between the Detroit Three, how the funds would be issued, or whether Chrysler is even an American automaker anymore. Detroit would receive 3 percent of allowances (funds raised through auctions of polluting rights and fines) from 2012 through 2017, and 1 percent of allowances through 2025.
“This is a significant achievement for the automotive industry and its workers, as the bill will help fund research, development, implementation and deployment of new, low-carbon technologies and upgrading manufacturing facilities to provide the next generation of green vehicles right here in the United States,” says Rep John Dingell (D-MI). It’s also a significant achievement for the automotive industry in the sense that it guarantees Detroit some form of revenue by 2012. Profitability, here we come!
More by Edward Niedermeyer
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@agenthex, I diagree. Pollution isn't bought, it is a byproduct and it is being charged in the negative. And not a good example. Your bug guy is charging not to rid your house because as any Floridian knows, you will get the bugs with or without him, but you are paying for his labor, experties and the purchase of his chemicals with the HOPE of having less bugs than before. Less bugs is a byproduct of his service...just like pollution. Now what they are trying to do is charge you his fee as well as a fee for each bug killed...and then the bankers openly gamble (speculate) on just how many that will be at a given rate.
Who ever said that enviro-taxes would be used to protect the environment? Taxes collected under the Kyoto protocol are not used for the environment; they are used as handouts for the poor nations of the world. So what's wrong with carbon taxes in the U.S. being used as handouts for poor corporations?