​(November 1, 2011) The latest installment of CalChamber News was released this morning. The video news piece focuses on recent action by the California Air Resources Board (CARB) which approved rules for a cap-and-trade program that include a tax estimated to raise $2 billion from California businesses. The tax will increase costs that will be passed down to consumers.

In the video news segment, CalChamber President and CEO Allan Zaremberg characterizes the tax as “probably illegal” and “hidden from the consumer.” Says Zaremberg: “Consumers will have higher prices at the pump…higher prices for products.” 

Sacramento motorists are also interviewed in the report. They complain of inevitably higher gas prices during difficult economic times when every dollar counts. 

Since the time CARB began discussing proposed regulations and the tax on businesses, the California Chamber of Commerce and other business groups have argued for adoption of an operable, cost-effective market designed to meet the goals of AB 32 without creating undue harm to the economy. Those arguments fell on deaf ears.  On October 20, CARB adopted “a tax on business that does nothing to maximize environmental benefits required under AB 32 and it is not needed to ensure the stringency of the overall cap,” said CalChamber Policy Advocate Brenda Coleman. In the news video, Coleman says the tax, “is a huge cost to business and consumers at a time when they can least afford it.” 

A full copy of CalChamber’s September 27, 2011 and August 11, 2011 letters to CARB and all comments submitted to CARB can be found at www.calchamber.com.