More California Woes

A good reason not to implement cap and tax. The california experiemnt.

The old adage, “As goes California, so goes the nation,” could foreshadow troubling years ahead when it comes to economic prosperity in the United States. And if the California Air Resources Board (CARB) moves forward with implementing costly regulations to reduce carbon dioxide and greenhouse gas emissions, it could serve as a precursor to what the U.S., specifically small businesses and American families, will face under a nationwide cap and trade program.

The Global Warming Solutions Act, also known as AB32, is a plan to reduce greenhouse gas emissions in California to 1990 levels by 2020, and by 80 percent by 2050. Since 85 percent of America’s energy needs come from carbon-emitting fossil fuels, the regulations imposed equate to a massive tax on energy consumption if enacted.

Who suffers the most? According to a new study by Sanjay Varshney, Dean of the College of Business Administration, California State University, Sacramento and Dennis H. Tootelian, Ph.D., Professor of Marketing and Director, Center for Small Business, California State University, Sacramento, small businesses and families do. They found that:...