If you’re looking to understand the differences between the cap and trade proposals outlined by Obama and alluded to by John McCain, this is a good place to start. While I trust Obama, and I trust Drum’s interpretation, I don’t understand the mechanism by which the issued permits under the assumed McCain proposal create a windfall for the oil companies. Granted, I haven’t had the cycles to apply any brainpower to this, so does anyone want to take a shot at explaining?

I should say, I understand why it’s cheaper for the companies in the short run to get the permits rather than bidding for them, but isn’t that just corporate welfare in the normal sense? or is that supposed to be the windfall?

Also, Drum’s explanation of how the 100% auction is less regressive depends on any legislation actually applying revenue from the auction as grants or assistance or whatever for lower income Americans. That seems hopeful, though more likely with a Democratic Congress than a Republican one. It’s still the United States Congress, however… color me skeptical.