Now here's an idea that I could support, and I think that many Americans would too. Below is a press release highlighting legislation that would do exactly that. It's from Freedom Action, "a web-based gathering of activists dedicated to self governance and free markets." Its web site is FreedomAction.org.
Freedom Action Supports New Bill to End Energy Subsidies
Washington, DC, November 3, 2011 – Energy tax credits have for too long been a taxpayer boondoggle, enabling bad business plans to drain resources from viable sectors of the economy. That’s why Freedom Action supports the Energy Freedom and Economic Prosperity Act (EFEPA) introduced by Representative Mike Pompeo (R-Kansas), which repeals all energy-specific tax subsidies for both renewable and conventional energy sources.
“Energy subsidies have been a drag on the economy for decades. Now that the federal government is broke, this is the right moment to get rid of all of them,” said Myron Ebell, President of Freedom Action. “Representative Mike Pompeo is to be commended for introducing a bill that will offend all the special interests that benefit from taxpayer handouts.”
As Rep. Pompeo points out, the bill could mean savings of up to $90 billion in energy tax subsidies over the next 10 years. Moreover, the bill makes a comparable reduction in the corporate tax rate for every dollar generated from the tax credit repeals, in order to prevent any net tax increase.
Subsidies repealed in EFEPA include:
- Plug-in electric and fuel cell vehicles
- Alternative fuel and alternative fuel mixtures
- Cellulosic Biofuel Producer Credit
- Alternative fuel infrastructure
- Production Tax Credit for electricity produced from renewable sources, including wind, biomass, and hydropower
- Investment Tax Credit for equipment powered by solar, fuel cells, geothermal or other specified renewable sources
- Enhanced oil recovery credit, and credit for producing oil and gas from marginal wells
- Advanced Nuclear Power Generation Credit
- Clean coal investment credits