In an editorial, former U.S. Rep. Mike Pappas (R-12) explains why a “polluter pays” bill to address climate change is not in the best interest of main street.
New Jersey lawmakers just introduced another feel-good “solution” to the climate crisis that will make life worse for everyday Americans in the Garden State.
In late September, Democratic State Sen. John McKeon began lobbying aggressively in favor of a bill that would force companies to pay a tax for “causing” climate change.
His legislation comes on the heels of a very similar bill that several Democratic U.S. senators introduced on the federal level on September 12.
These two pieces of legislation, which employ the so-called “Polluter Pays Principle” that’s gained popularity among leftist politicians, would have government bureaucrats calculate how much each company must pay for their part in “causing” this climate crisis.
These “Polluter Pays” bills are being marketed as a way to ensure marketplace fairness and a cleaner country, but in reality, they would penalize companies for the “crime” of doing business in our state — for driving the cars that put food on our tables and make our supply chain hum and for providing us with the oil, gas, and energy we need to heat our homes and start our cars.
That’s not a recipe for fairness; it’s a recipe for grinding commerce in New Jersey to a halt.
With such a law in effect, fewer fossil fuel companies will choose to do business in New Jersey, and the ones that continue doing so will have no choice but to raise their prices to offset the added operational costs.
As a result, everyday life would become increasingly expensive for the same New Jerseyans already struggling with sky-high consumer price inflation.
These pieces of legislation also ignore how dependent New Jersey is to the oil and gas industry.
A full 10% of New Jersey residents commute to New York City each day for work. In fact, the U.S. census reports that New Jerseyans have the third longest average commute time in the entire United States.
It is no surprise then that New Jersey is the nation’s 14th largest natural gas consumer — roughly one-third of the state’s energy consumption comes from its transportation industry.
Moreover, according to the U.S. Energy Information Administration, almost three-quarters of New Jersey households use natural gas as their primary heating fuel, and nearly half of the state’s total electricity generation is provided by it.
Yet, under the “Polluter Pays” bill framework, New Jerseyans would incur massive costs before even arriving at their offices.
When asked about how he can protect consumers from bearing the burden of his legislation, McKeon shrugged off the concerns, stating, “well, the money has to come from somewhere.”
That answer doesn’t give much indication that he has given much thought to what’s in Main Street New Jerseyans’ best interest.
Indeed: the Pacific Research Institute analyzed the cost of a similar “Polluters Pay” bill in California and concluded that it would inflict significant downstream costs on consumers, much like a carbon tax.
New Jersey’s legislators seem to have their priorities backward, approving raises on their own taxpayer-funded salaries during the last legislative session but neglecting votes on important bills that would protect consumers’ interests.
These “Polluters Pay” bills are just the latest examples of this unfortunate reality. They will further financially burden the state’s taxpayers without actually addressing pollution in the Garden State.
Put another way, polluters won’t pay; New Jerseyans will. Here’s hoping these bills get shelved quickly.
Pappas is a former Republican member of Congress from New Jersey and currently serves as the business administrator in Bridgewater.
