California's Cap and Tax will drive out Businesses

The Massive Socialist Cap and Tax drains millions out of business to fund unions and welfare

• Leftist use greenhouse gasses as the excuse for the Marxist re-distribution of the wealth.
• If these gasses were the issue they could simply be banned, but it is all about money, not gas.
• No new business in their right mind would deliberately locate inside California. 

Socialist "environmental" leaders this week hailed California's first cap-and-trade auction a success . . . . with millions of dollars re-distributed from the job creators Marxist style to those with wants and needs.

Comrade Governor Jerry Brown and Leftist state lawmakers assumed three auctions this fiscal year would generate $1 billion total for the state, half of which they want to plug the state budget deficit. But most of the $289 million raised this month is dedicated for utilities that were also major campaign donors. That will leave about $55.8 million for state programs.

A low auction price for 2013 credits and low demand for future credits suggest that California will fall well short of its $1 billion projection this year. The nonpartisan Legislative Analyst's Office estimates that if trends hold in the February and May auctions, the state may only raise about $140 million in the first year.

Even if the state took all of that for the budget it would still miss its budget projection by $360 million. The LAO previously questioned whether the state could legally use $500 million in cap-and-trade auction money for the budget.

"The likelihood of there being a hole in the budget has increased," said Tiffany Roberts, an LAO analyst who focuses on climate change issues. "Not only do we question the viability of using the $500 million, but if these assumptions hold, it's unlikely there's even going to be $500 million."

Read more here: http://blogs.sacbee.com/capitolalertlatest/2012/11/first-cap-and-trade-auction-a-bust-for-california-budget.html#more#storylink=cpy

(Sacramento Bee)