Tomorrow’s Cap and Trade Horror Story Today

Conn Carroll / April 06, 2009

The Nation’s Chris Hayes writes:

Two years in Washington have started to make me feel jaded. I’ve come to expect that even nobly conceived laws will be manipulated and distorted for private ends. But once in a while I hear a story that gives me the queasy feeling that I’m nowhere near cynical enough. Such is the case with the tale of the paper industry and the alternative-fuel tax credit.

Thanks to an obscure tax provision, the United States government stands to pay out as much as $8 billion this year to the ten largest paper companies. And get this: even though the money comes from a transportation bill whose manifest intent was to reduce dependence on fossil fuel, paper mills are adding diesel fuel to a process that requires none in order to qualify for the tax credit. In other words, we are paying the industry–handsomely–to use more fossil fuel. (more…)