PENCE OP-ED: "HOOSIERS KNOW WE CAN DO BETTER" Bill is an economic declaration of war

Bill is an economic declaration of war By Mike Pence After weeks of political horse-trading over the hot issue of climate-change legislation, a "compromise" is now making its way through the U.S. Congress. All the window dressing that this so-called compromise has prompted does not change the fact that it amounts to an economic declaration of war on the heartland of America, and it must be opposed.

Hoosiers should be wary. If Washington's national energy tax becomes law, it will have a devastating impact on the price at the pump and utility bills across the nation, and in the state of Indiana especially.

For weeks, various members of Congress asked senior Democrats, such as House Energy and Commerce Committee Chairman Henry Waxman, D-Calif., and Rep. Edward Markey, D-Mass., for substantial changes to their proposed cap-and-tax legislation. These members represent states that rely on carbon-based energy to heat homes and power businesses; the plan being considered dramatically restricts its use.

The result would be significantly higher utility bills and a mass relocation of jobs overseas. Indiana generates roughly 94 percent of its electricity from coal. A recent study by the Heritage Foundation found that Indiana would be the hardest hit among all 50 states. As Gov. Mitch Daniels testified at an Indianapolis energy summit I hosted Wednesday, Hoosiers would be dealt "enormous hardship" by this energy plan.

Rep. John Dingell, D-Mich., former chairman of the Energy and Commerce Committee, said it best when he recently proclaimed, "Nobody in this country realizes that cap and trade is a tax, and it's a great big one." But you don't have to take just Dingell's word for it; President Barack Obama himself declared during the campaign that under his energy plan, energy "prices would necessarily skyrocket." In fact, the average American household will pay an estimated $3,100 a year in extra energy costs.

To soften the blow, a number of changes were recommended to this misguided bill. For example, when it comes to the required reduction in the level of CO2 emissions, the original draft proposed a 20-percent reduction below 2005 levels. A counter offer asked for a 6 percent reduction. But where did this grand compromise arrive at for a solution? Seventeen percent, despite the fact that many of the technologies needed to reach this target are new and untested, making the emission reduction targets nearly impossible.

Even more devastating than what the "compromise" sought to address is what it has left unaddressed -- the loss of American jobs. Estimates suggest that between 1.8 and 7 million jobs could be lost as a result of this national energy tax plan. Indiana has already lost roughly 150,000 jobs because of the current economic recession. A national energy tax will only make the pain worse. Manufacturing plants, and the jobs they create, will relocate to foreign countries with less stringent environmental regulations and, ironically, inflict even greater harm on our global environment.

The compromise also fails to address the lack of cooperation from other countries, such as India and China. A paper published by MIT's Joint Program on the Science and Policy of Global Change states, "With rapid growth in developing countries, failure to control their emissions could lead to a substantial increase in global temperature even if the U.S. and other developed countries pursue stringent policies." Ironically, authors of this legislation say global participation is critical to reducing carbon emissions, yet they voted against an amendment in committee that would have required participation from India and China.

Hoosiers know we can do better. Already, under Daniels' leadership, Indiana has made significant investments in alternative energy sources such as wind and clean-coal technology. We can create comprehensive energy solutions that lessen our dependence on foreign oil and lead us to a stronger economy and cleaner environment.

But back in Washington, Waxman and Markey doled out just enough crumbs to their shaky colleagues to ensure that this national energy tax made its way through the Energy and Commerce Committee.

This compromise is nothing more than political cover for a Congress that wants to tax energy, control the market and restrict freedom. For the sake of our economy and our environment, it must be defeated.