While many companies hire lobbyists to win earmarks, General Electric’s unmatched lobbying force has secured a tax increase — or its equivalent — in President Barack Obama’s budget. Labeled “climate revenues” and totaling $646 billion over eight years, this line item in Obama’s budget has inspired confidence in GE Chief Executive Officer Jeff Immelt. As Immelt put it in a letter this week, he believes that the Obama administration will be a profitable “financier” and “key partner.”
On page 115 of Obama’s fiscal 2010 budget is Table S-2, titled “Effect of Budget Proposals on Projected Deficits.” The chart forecasts the costs of Obama’s spending proposals and the added revenue of his proposed tax increases. It also forecasts, beginning in 2012, billions of dollars a year in “climate revenues.” This budget line, which has struck fear into some lawmakers from coal-dependent states, could spell salvation for GE in these times of uncertainty.
How can Obama generate “climate revenues”? By forcing companies to pay for the right to emit greenhouse gases such as carbon dioxide.
A tax on greenhouse gas emissions could accomplish this, but Obama’s preferred policy — and the approach embraced by a few congressional bills in recent years — is called “cap and trade.” In short, cap and trade requires businesses to spend “credits” to pay for their emissions. Businesses can buy or sell these credits, and the market — not the government — would directly set the price of a credit. Government would initially auction them off, generating revenue.
GE — a member of the U.S. Climate Action Partnership, which advocates cap and trade — leads the push for greenhouse gas restrictions.
In the fourth quarter of 2008 as the company’s stock fell 30 percent, GE spent $4.26 million on lobbying — that’s $46,304 each day, including weekends, Thanksgiving and Christmas. In 2008, the company spent a grand total of $18.66 million on lobbying.
Reviewing their lobbying filings, you might think you were looking at Al Gore’s agenda. GE’s specific lobbying issues included the “Climate Stewardship Act,” “Electric Utility Cap and Trade Act,” “Global Warming Reduction Act,” “Federal Government Greenhouse Gas Registry Act,” “Low Carbon Economy Act,” and “Lieberman-Warner Climate Security Act.”
This isn’t altruism or public relations. GE has started a joint venture called Greenhouse Gas Services, which invests in — and hopes to manage the trade in — greenhouse gas credits. But these investments and this trading floor are of basically no use and nearly no value without government restrictions on greenhouse gases.
every time a bailout occurs the hope, truth, faith etc of capitalism/freedom/authority/initiative etc is lost........if those who made the system cant stand to use it....then why should we take it??????
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
GE shares fall despite forecast for financing unit NEW YORK — General Electric Co. shares fell for the fifth straight session Thursday, even after its chief financial officer said the company’s troubled GE Capital unit will earn a profit this year. Keith Sherin’s comments came a day after shares of the Fairfield, Conn., conglomerate tumbled to an 18-year low on concern about how much exposure GE Capital has to toxic debt. Those worries, which have fueled speculation that GE will need to secure outside funding, have pushed down shares by nearly 60 percent since the beginning of the year. Shares eased 3 cents to close at $6.66 as the Dow Jones Industrial Average and Standard & Poor’s 500 index each lost more than 4 percent. Earlier in the session GE shares rose as high as $7.17, a 7.2 percent increase from Wednesday’s close of $6.69. On Wednesday the stock fell as low as $5.72 — a level not reached since 1991.
Logged
