With deficits soaring, cap-and-trade bill likeliest to be dropped

In his first State of the Union address, President Obama is planning to outline a more pragmatic approach to spending and deficit reduction - a move that could very well finish any hard-charging approach to cap and trade legislation.

Environmentalists and global warming theorists will likely not want to listen to President Obama's first State of the Union address this January. As the U.S. trade deficit widened at an alarming and unexpected 18 percent rate in September, a newly-pragmatic White House appears to be emerging as a result. This new pragmatism with regard to spending will be demonstrated in the words of the president's State of the Union presentation, as the White House seeks now to position itself as a champion of deficit reduction. This position has clear political overtones - as moderate Democrats face a tough election year in 2010, and the echoes of the Republican wins in New Jersey and Virginia are still ringing in their ears. But the move also has significant impact on legislation that features big spending. The cap-and-trade bill looming in the Senate is the likeliest piece to go on hold or to disappear entirely. “I think this means cap-and-trade has to go to the backburner,” Democratic lobbyist Steve Elmendorf told Politico. The cap-and-trade bill faces broad criticism, as broad economic questions remain on the impact the legislation may have on the poor and on jobs. In addition, more scientists are speaking out about the causes of climate change - saying that temperature changes are not reflective of carbon dioxide levels, but more likely due to solar cycles and variations in the earth's wobbling orbit. Given these questions and issues, the cap-and-trade bill is more of a headache for President Obama and the easiest concession for Democrats to make. “Democrats have to reassure voters we are not being reckless,” a Democratic official involved in the planning told Politico. “The White House knows this and that's why we'll be hearing a lot about reducing the deficit early next year. Democrats owned this issue for the past four years and cannot afford to cede it to Republicans now."