N_Fiddledog N_Fiddledog:
There's nothing "simple" about cap and trade. The document for the proposed American cap and trade bill is so large very few have actually read it.
Cap and Trade does however meet the basic criterion for a tax. The government gets money when it first sets the price on carbon credits. You and me pay money when, say energy companies, pass that price on to the consumer. Even Obama stated energy prices would rise after cap and trade. The estimated price per average family I hear is about $1600 a year. As I understand it, this works out to be about a 50% tax hike. I've heard it called the biggest tax increase in the history of man.
In the sense the bill is not sent directly to people from the government, you could possibly get technical, and say it's not a tax. However the ultimate effect is the same. The government makes money. That money ultimately comes out of peoples' pockets. C & T performs the function of a tax. It has the effect of a tax. To me, saying it's not a tax is just semantics.
Way to miss the point.