Prop 23 Update: Gov’s Budget Takes 80% of AB-32 Cap and Trade Slush Fund

Russ Steele

Gary Hunt writing at Oilprice.com web site has the details:

. . . Governor Brown’s 2012-2013 State Budget proposal to take 80% of the carbon tax revenue or about $500 million per year to reduce the budget deficit for the coming two years.  The quarterly carbon credit auctions are expected to produce $660 million to $3 billion per year. The Governor’s budget assumes California will net $1 billion from such auctions to start. The $500 million of revenue take assumed in the first year proposed budget will be used to offset existing General Fund costs for current emissions regulation activities, and the remaining revenues will be used on new programs to reduce emissions.

 Now we know that AB-32 was really about, it was not about reducing CO2. More details HERE. 

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

5 Responses to Prop 23 Update: Gov’s Budget Takes 805 of AB-32 Cap and Trade Slush Fund

  1. Sean says:

    And don’t forget, not only is this just another tax that goes into the general fund, it’s a tax that impacts lower income people in a disproportionate way as low to middle income earners typically spend 10% of their income on energy where the more affluent spend only 3-4%. So let’t count up what the liberals have done for the less fortunate, 1. increased cost of energy through cap and trade, 2. trying to make their vices more expensive by taxing cigarettes more heavily, 3. increases the cost of health insurance for low income workers with benefits by paying the lowest compensation to health care providers of any state which is made up by higher costs to their insurance companies. I guess it’s open season on low to middle income workers in California. I wonder how long it will be before these folks realize the heavy tax burdens they are paying through surrogates in paying for the everyday things they use.

  2. gjrebane says:

    “I wonder how long it will be before these folks realize the heavy tax burdens they are paying through surrogates in paying for the everyday things they use.” The most likely answer is never. A slow simmer will kill and cook a frog, especially a dumb one. Enslavement arrives in a similar manner.

    • Sean says:

      Perhaps they need a bit of help. Rather than make a big issue of the fact that the working poor pay little in the way on income taxes, instead talk about the amount of hidden taxes low-middle income folks pay through their healthcare plan, vice taxes hidden in the price of goods sold or energy. I’m sure there are a lot of other things too. Rally the folks who are struggling in California and you might find some serious political power.

  3. Do you thjink he will pay it back? It will be handled just like the Transportation Fund they raided and left empty so they could pay the welfare bill.

  4. Dixon Cruickshank says:

    I said this a year ago – at least

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