Taxpayers for Common Sense along with a coalition of nearly 30 groups sent a letter to Congress calling for an end to energy subsidies.
Full text of the letter can be read below. For a PDF of the letter please click here.
March 17, 2011
An Open Letter to the United States Congress:
It’s Time to Put an End to Energy Subsidies!
Dear Member of Congress:
We are writing this letter to express our collective concern over the massive increase in subsidies, set-asides, and special treatment for politically connected energy sources that has largely defined American energy policy in recent years. According The Pew Charitable Trusts, the United States federal government provided $18.6 billion worth of direct financial subsidies to energy companies and organizations in 2009.
While some energy programs may enjoy broad public support, one thing is clear: the trajectory of federal spending to support economically suspect energy sources is unsustainable. From direct payments and loan guarantees to mandates, neither the environment nor the American economy can afford to be hampered by these anti-growth, anti-competitive policies.
But even aside from their detrimental impact on the economy, the fact is that subsidies have not worked if the objectives are to decrease America’s reliance on foreign energy sources, to push technological development forward, or to ensure that Americans have access to reliable and affordable energy sources. Such policies provide unfair advantages for some producers, typically the more politically astute, while creating competitive disadvantages to other, often more promising but more nascent technologies. Centrally controlled energy policy has not worked, Washington does not know best, and the law of unintended consequences cannot be vitiated.
Instead of promoting a reliable and affordable energy industry, the subsidy-first energy policy that has prevailed the past three decades has created whole industries dependent on government, and focused as much on ensuring their share of taxpayer largesse as they are on developing energy. This is not acceptable.
We respectfully request all Members of Congress to follow these basic guidelines as new energy legislation for the 112th Congress is considered:
1. No new subsidies. No legislative proposal should include new subsidy programs of any kind. This includes but is not limited to direct subsidies, loan guarantees, capital subsidies, mandates, insurance subsidies, and spending through refundable credits in the tax code;
2. No expansion of existing subsidies. Many subsidies were authorized with attached sunset provisions. Despite this, many continue to be reauthorized time and again. At a minimum, Congressional leaders should abstain from further reauthorizations;
3. Evenly apply lower taxation across the board. Any increase in taxation that would otherwise result from allowing existing tax preferences to sunset should be offset by reducing burdens on all.
4. Begin to dismantle the current system of subsidies. Simply avoiding new subsidies is not enough for the long-term health of America’s economy. Congress should commit to a sustained, aggressive process of eliminating existing subsidies.
Americans sent a strong message to Members of Congress in the 2010 mid-term elections: It’s time to stop wasteful government spending and end the destructive nature of special interest politics. Stopping energy subsidies is a great place to start.
Sincerely,
Duane Parde
National Taxpayers Union
Phil Kerpen
Americans for Prosperity
Tom Jenney
Americans for Prosperity – Arizona
Jeff Gayner
Americans for Sovereignty
Grover Norquist
Americans for Tax Reform
Jeff Tate
Campaign for Liberty
Barbara Anderson
Citizens for Limited Taxation (Massachusetts)
Chris Chocola
Club for Growth
Matthew Brouillette
Commonwealth Foundation (Pennsylvania)
Myron Ebell
Competitive Enterprise Institute
Freedom Action
Tom Schatz
Council for Citizens Against Government Waste
Marita Noon
Energy Makes America Great
Matt Kibbe
FreedomWorks
Charles Sauer
Grassroots Voices
Michael A. Needham
Heritage Action for America
Terry Campo
Illinois Alliance for Growth
Carrie Lukas
Independent Women’s Forum
Kevin McLaughlin
Iowans for Discounted Taxes
David Ridenour
National Center for Public Policy Research
Doug Kagan
Nebraska Taxpayers for Freedom
Stephen Stone
RenewAmerica
Paul Gessing
Rio Grande Foundation (New Mexico)
Richard Rider
San Diego Tax Fighters (California)
Steve Ellis
Taxpayers for Common Sense
John Roberts
Taxpayers Union of Louisiana
Justin Owen
Tennessee Center for Policy Research
Brad O’Leary
The O’Leary Report
C. Preston Noell III
Tradition, Family, Property, Inc.
Al Aitken
Virginians Over-Taxed On Residences
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