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July 14, 2008

Before his election as the 44th President, we wrote many scathing comments about Barack Obama. We said that if he was elected he would try to force socialism down our throats. He called it "redistribution." The American Heritage Dictionary defines socialism as a system of social disorganization in which the means of producing and distributing goods are owned by a centralized government that plans and controls the economy. Both Webster and Random House identify socialism as a "Marxist theory."

In his first address to Congress President Obama said "Send me legislation that places a market-based cap on carbon pollution." Rep. Henry Waxman and Rep. Edward Markey went along with his plea and cosponsored" The American Clean Energy and Security Act." He and his allies have tried to sell this bill as a "market-based approach" to reducing emissions. This approach is very misleading. Cap-and –Trade subordinates markets to central planning. It takes the most important economic decisions out of the hands of private individuals acting in the marketplace and puts them in the hands of government. We certainly know President Obama approves of central planning, but even he must agree that most centrally-planned economies collapsed toward the end of the last century. The only countries that are both models of economies that have low, indeed negligible, greenhouse- gas emissions are Cuba and North Korea! Both paragons of a free society!!

This bill is a monstrous tax hike, an unprecedented energy tax on every man, woman, and child, every household, every business. In fact, we believe it will be the largest tax hike in history. It will have a huge impact on the future of sustained economic growth. It does this simply by making energy, the lifeblood of our economy, much more scarce and expensive.

President Obama and Vice President Biden would say that United Small Business is using "fear mongering." We say to our critics that we are using "fact mongering." We believe the facts have to be put on the table for the voting public and put on the desks of the Senate. This bill and others planned have given us a glimpse into the "looking glass" of what America will look like with this type of legislation: trillions of dollars in debt, asphyxiating free markets and diluting forms of capitalism. By the way, the leader for this type of legislation was the late Kenneth Lay, Chairman of the Enron Corporation!!

Last month, Energy Secretary Steven Cho told a House panel "that the United States would likely have to raise trade tariffs on carbon-intensive imports as a weapon to protect American business to level the playing field with countries that don't impose similar greenhouse-gas restrictions that the Obama administration envisions here." He also testified "if other countries don't impose a cost of carbon then we will be at a disadvantage…(and) we would look at duties that would offset that cost." These comments provoked an immediate counter threat from Ei Gao, who is a top Chinese trade official. He said "That a carbon tariff would be a disaster that would lead to a trade war."

The White House Office of Management and Budget Director Peter Orszag said "much of the costs of the plan will be passed along to consumers in the form of much higher prices for energy and energy intensive goods." My alma mater, the United States Chamber of Commerce, puts the cost at $3600 per year. President Obama has promised to offset some of these costs with some sort of tax credit, but everyone would still pay significant amounts of money above and beyond the credit.

Myron Ebell, Director of Energy and Global-Warming Policy at the Competitive Enterprise Institute said "Rep. Henry Waxman and Rep. Edward Markey have blithely set targets for reducing greenhouse-gas emissions without any serious analysis or even awareness of the colossal costs of energy rationing to American consumers, workers and industry." Mr. Ebell also said "Beyond these enormous economic costs, Waxman-Markey would put big government in charge of how much energy people can use. It would be the biggest government intervention in peoples' lives since the Second World War, which was the last time people had to have rationing coupons in order to buy a gallon of gas."

Tell your Senators to consider seriously the threat to our liberties posed by putting government on charge of how much and what type of energy we can consume. Let your Senators know in advance that if they vote for this legislation they will pay a heavy price when they are up for reelection! Please pass this action call on to your employees and let us know of any suppliers or business entities you want us to contact and as usual send us a copy of your correspondence to your Senators.

Thank you in advance,
Mal Lunn
Malcolm Lunn
Chairman of the Board
United Small Business of America

United Small Business
Proclaiming Liberty to America's Small Business
P O Box 3132 St. Charles, IL 60174 - unitedsmallbus1@comcast.net
Phone 877-791-7705 Fax 630-475-3844


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