For
too long, the government has tried to prop up its favorite “green”
energy sources with targeted subsidies—tax credits, grants, loan
guarantees, state-based mandates, etc. Too many of these pet
projects—Solyndra, Beacon Power, Ener1, A123 Systems—go bankrupt and
belly-up, sticking taxpayers with the bill.
Targeted
energy subsidies distort the energy market, drive up electricity
prices, and slow overall economic growth. And they also give energy
producers an incentive to waste tax dollars on unproven and
non-economically viable energy sources. Tragically, many of these
subsidized sources have actually turned out to be harder on the
environment than traditional fuels.
Looking
at the poor track record of targeted energy subsidies in the United
States, it’s clear that government planning doesn’t work. Washington
bureaucrats and central planners do not possess special knowledge of how
to improve the energy market. Try as they might, government officials
cannot substitute their own will for the preferences of people like you
and me acting in the free market. Competition drives innovation;
government favoritism stifles it.
Thankfully,
there is a bill right now in Congress that proposes a free market
solution. The Energy Freedom and Economic Prosperity Act (H.R. 259),
sponsored by Rep. Mike Pompeo (R-Kansas), would eliminate all energy
subsidies across the board, including oil and green energy subsidies. In
exchange for closing these tax loopholes, the bill would reduce the
federal corporate tax rate, which is currently the highest among
developed countries. A lower tax rate benefits all businesses in the
energy market, not just the government’s favorite friends.
Sincerely,
Americans for Prosperity
No comments:
Post a Comment