The airline community is watching cap&trade closely since they are massive users of fuel. Aviation Week reports that Rep Henry Waxman, D-Calif, bald headed twit with an attitude, and Ed Markey, D-Mass, my old rep, dunderhead supreme, have drafted a 648 page Cap and Trade bill. Right there we are in trouble. Nobody knows what's hidden inside 648 pages of legal gobbledegook, and it will take months to read and understand it all, so if it passes, we have no idea how much it's gonna hurt.
Apparently Obama would decide how much CO2 America could emit (the cap). Most likely the cap will be lower than current emissions, so we are in more trouble right there. Somehow permits to emit so much CO2 would go to people like electric utilities. CO2 emitters (just about everyone) might get permits given out for free, or might have to buy them at a government run auction. The government run auction brings in cash, so good chance the final bill will be written that way. The oil companies would have to buy permits to cover the CO2 emitted when the fuel they sell is burned. They would raise fuel prices to pay for the permits.
In short, Aviation Week sees cap and trade as a fuel tax, lightly disguised, and wrapped up in a green ribbon.
The airlines are hoping the fuel tax paid by the airlines would go to improving the airline infrastructure (airports, nav aids and such). Fat chance of that happening. The airline spokesmen admit that fuel taxes are coming, the public will allow them to pass
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