Presidential Push

" One of president Obama's biggest priorities appears to be in serious trouble this morning on Capitol Hill. The president is calling top Democrats to the White House in an effort to save cap and trade. This of course is the effort to head off what the white house calls the global warming threat. Now some members of the president's own party are calling this plan quote an energy tax and a great big one. We bring in Christopher Horner now he is a senior fellow at the competitive enterprise institute and he's also. The author of the politically incorrect guide to global warming and environmentalist and Christopher good morning to you. Good morning -- this this -- attention because this is one of president Obama's stated top two initiatives. As our president and it involves. Global warming and and cracking down on not emissions that he thinks are harming media environment now we learned that his plan is in trouble. Not so much for the Republicans which we -- but Democrats people within his own party. May be trying to stifle his proposals. Four revisions on his so called cap and trade does this surprise you."

" feel lobbyist in town who are surprised because they've been going very aggressively you know we have for global warming obvious for every member of congress now this is a big business it's not about climate. Nothing ever proposed this scheme or anything else would according to anyone actually detect the impact of climate. The president having a problem because this -- think they revenue raiser his own budget chief described it as well as an energy tax it's very inefficient energy tax. The president in a rare moment of candor while running. Said it would necessarily skyrocket your energy prices that's the objective it's not about climate so obviously he's having a problem. Curry and support within his own party for. The biggest tax increase if they see it in their budget in American history. And just re re run history real quickly in 1993. We had the exact same thing happen. The president in his first year in his first budget proposed an energy tax it was called the BTU tax and it according to Al Gore he told the Financial Times it cost them control congress. And a lot of these house Democrats are saying we like our job this threatens a lot of job but it. Most particularly threatened there."

" Well that's the thing is that they he's a the president is calling all of these top Democrats -- this key committees it's dealing with this proposed legislation. Two White House he wants to speak with all of them to try to get them on board in his problem. He's the moderate Democrats many of whom work in states where this cap and trade policy as it's known. He's not popular and -- and other Democrats others -- no question about whether they're going to get behind this one of the president's top initiatives. -- did you explain that because you think cap and trade okay. In theory it sounds like a good game we like to -- environmental and nobody wants our kids to be grown up good breeding pollution forever. What the problem with this policy why why."

" Is it a secret tax. Okay -- it's a rationing scheme just like World War II rationing of gasoline where by the state decides how much of something the private sector can have or use in this case electricity -- gasoline. And the issue quotas and ration coupons but they sell the ration coupons to raise revenue. They don't sell them to individuals because individuals vote they sell them to corporations but Peter or stock the president's budget director said. Consumers get the tax passed on to them it really won't be paid by corporations but to the extent it will they'll just -- that's what happened in Europe. It's a hidden tax which makes it the best kind of tax they call -- a market mechanism because buying and selling of the ration coupons is involved. But effective attacks according to the president's budget director and -- Congressional Budget Office has said this for years. Center left environmentalists like resources for the future said it's. Fortified times as expensive. As just taxing these emissions which are not pollution by the way as just taxing them if you wanted to reduce them. But you don't pay company constituencies with a direct tax you risk your own political career with a direct tax write and again it's not about the climate."

" Well it's interesting because -- you know now we're seeing is push back from members of his own party. The Republicans know they may be a lost cause for President Obama on this they're holding their own energy summit. It against this in this plan but he's got -- his own party line before worries about the GOP Christopher thanks so much for your insights and we appreciate being here for."