A new honeypot for California state government is the periodic “cap and trade” auctions of pollution rights. Actually CO2 rights, which is NOT a pollutant. But I’m being churlish. The lesson is that, when able, government will sell us the very air we breathe.
Here’s the fun part. The latest quarterly “cap and trade” auction was projected to bring in over $500 million of revenue. It fell a bit short of projections. 98% short, to put a point on it. They raised about $10 million. Apparently industry is not keen on buying something that is free in the other 49 states — let alone paying the high prices Sacramento sought. Who knew?
It gets better. This money is the revenue that’s supposed to pay for CA HSR. Not that it’s legal to do so, but that’s a different issue.
Solution? Well, they could end the HSR madness. Bwahahahaha!!! Or they could (with a frowny face) make this “unexpected shortfall” the reason to raise our taxes even higher.
Here’s an excellent article that further details this mess: