minds are noting Court throws out
Sarkozy's carbon tax.
new carbon emission tax, due to have gone into effect tomorrow, has been
ruled illegal by the country's constitutional court because it exempted too
The Conseil Constitutionnel struck down the tax on Tuesday because the
exemptions breached ''the principle of [tax] equality''.
It estimated that 93 per cent of industrial emissions outside of fuel use,
including those of more than 1000 of the country's most polluting industrial
sites, would be exempt from the tax of €17 ($27) a tonne of emitted
The ruling is a blow for the President, Nicolas Sarkozy, as the measure was
one of his flagship initiatives to cut emissions. It also leaves the
Government with a €4.1 billion hole in its 2010 budget.
Meanwhile, the President of Brazil, Luiz Inacio Lula da Silva, has signed a
law requiring that Brazil cut its projected greenhouse gas emissions by 39
per cent by 2020, meeting a commitment made at the Copenhagen climate change
The Conseil Constitutionnel made the correct ruling. It's clear to see what
the policy was: handouts to 1000 favored industries at the expense of
Walmart Wins Oregon Loses On Energy Credits
Please consider Walmart, others
make money on Oregon's energy tax credits.
Oregon started handing out jumbo tax subsidies for renewable energy projects
two years ago, one of the biggest beneficiaries was also one of the world's
richest corporations -- Walmart.
No, the retail giant hasn't branched to solar panels or wind turbines.
Instead, Walmart took advantage of a provision in Oregon's Business Energy
Tax Credit that allows third parties with no ties to the green power industry
to buy the credits at a discount and reduce their state income tax bills.
State records show Walmart paid $22.6 million in cash last year for the right
to claim $33.6 million in energy tax credits. The cash went to seven
projects, including two eastern Oregon wind farms and SolarWorld's
manufacturing plant in Hillsboro. In return, Walmart profits $11 million on
the deal because that's the difference between what it paid for the tax
credit and the amount of its tax reduction.
The loser in the transaction is Oregon's general fund -- which pays for
public schools, prisons and health care programs -- because the state is out
the full $33.6 million in tax revenues.
Walmart isn't alone. An analysis by The Oregonian shows Costco and U.S. Bank,
which also rank among the nation's top 200 wealthiest businesses, have made
millions by buying up energy tax credits to cut their Oregon tax bills.
Dozens of other companies and hundreds of individual Oregon taxpayers also
have cut their tax bills by buying up the tax credits.
"It's so convoluted," says Eric Fruits, an adjunct economics professor
at Portland State University who has studied Oregon's energy incentives.
"You've got all these dollars swirling around. Everyone is trying to
grab them as fast as they can."
Walmart, Costco and U.S. Bank, which top the list of energy credit buyers,
shelled out a combined $67 million to avoid paying $97 million in Oregon
Walmart and others are making money on projects that were closed, went belly
up or never produced the energy or energy savings they initially claimed.
Gov. Ted Kulongoski and state energy officials say they recognize problems
with the energy tax credits and are working to overhaul the program when
state lawmakers convene for a short session in February. Among the targets of
the overhaul is the pass-through option.
"The governor believes there's been a public value to the program,"
says Anna Richter Taylor, Kulongoski's spokeswoman. "That said, he also
is very supportive of efforts to align the rate better with other public
Oregon thinks it knows how to fix the problem, but the whole idea of granting
companies credits that they can trade is simply fatally flawed.
Walmart, Costoc, and US bank made millions for doing nothing and Oregon
taxpayers got clobbered.
In Europe, the Cap-and-Trade
Carbon Credit Extortion Scam In Full Swing.
world's biggest polluters wanted the carbon cap so they could trade their
permits (acquired for free), to other businesses who will have to buy them to
Now some of those polluters are going to move to India anyway after extorting
extra permits out of the EU.
Not only is the global warming data bogus and manipulated, the whole
cap-and-trade program is now easily seen as nothing more than an extortion
scam, a scam that has fittingly blown up in the face of the EU and UN clowns
who created it (unless of course that was their intention all along).
Unfortunately, EU workers and taxpayers are the ones who are going to suffer
over this, not the clowns who created this ridiculous scheme.
Such is the
insanity of Cap-And-Trade. It creates a big stream of winners and losers out
of thin air, with taxpayers being the most likely loser.
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