Democrat Senator John Kerry, in an interview with the Washington Post, insists that the carbon cap and trade legislation he and Barbara Boxer have drafted to combat mythical global warming is not a tax.

Uh huh, right.

Kerry further admits that cap and trade will raise costs for consumers.  Kerry said the following:

In fact, what we’re trying to do is cushion any impact on any industry that might have to raise its rates, and so that’s why we give a rebate to citizens, to make up for that difference.

At least Kerry admits that price inflation will occur as costs from this bill are passed-along to consumers.

But where is this rebate money going to come from?  Will it be borrowed from future generations?  There has to be some tax revenue somewhere to pay for it.

Cap and trade may not impose a direct tax, but it imposes all kinds of indirect taxes.  The cost of energy will rise.  This will impact every man, woman, and child in the country as the cost of every product in every store will rise.  The cost of home energy use will rise, too.

Businesses will have an indirect tax not just in having to buy carbon allowances, but in employee costs to comply with this bill.  Then, businesses that sell excess carbon allowances will be taxed on the profits they make from selling them.

The government is going to impose a cost on industry then give people “rebates” to partially offset the higher costs they experience because of this bill.  That money has to come from somewhere.

The goal of the Democratic Party all along has been to get everyone dependent on the government.  They will raise the cost of everything then send people a “rebate” check which will not come close to offsetting price increases.

But what will economy-wide price increases do to jobs?  It will kill them.  As prices rise, aggregate demand declines.  When demand goes down, jobs are lost.