Cap and Trade costs are only half the story - Auction revenues can be returned to consumers

Anti-cap and trade forces (oil companies, coal companies, and their campaign contribution recipients) are publicizing a U.S. Department of Treasury report on the costs of cap and trade. Their right-wing spin interprets the total in "new taxes" (which are actually auction revenues from the government selling permits to corporations, then having them pass costs to consumers) of between $100 billion to $200 billion a year as meaning the cost per American household could be up to $1,761 a year.

The spin is wrong for several reasons. First, it depends what you do with the money. You can return the auction revenues back to people as a dividend or share. The costs are totally different depending on what you do with the money. Look up Dallas Burtraw's papers on the RFF website for more info.

Second, each state has unique carbon costs, depending on the amount of coal in its electricity mix, investment in energy efficiency, weather (too cold or too hot and you use more heat or AC), and more. So if you're in ND, WY, or WV, sure, you'll pay more. But if you're in Vermont, CA, or even Idaho, you won't pay that much. Now, maybe you want some redistribution payments to make it more fair, and that can be done through modifying the per capita dividend or share. But let's take the right wing spin with a large grain of salt (or chunk of smoggy coal-filled toxic pollution).