Let the Wind Tax Credit Expire
Yesterday, Mitt Romney’s campaign said that the candidate wants to let the wind tax credit expire. In six months, the tax credits will lapse unless Congress decides to reauthorize them. The Hill reports a statement made by a campaign aide:
“‘He will allow the wind credit to expire, end the stimulus boondoggles, and create a level playing field on which all sources of energy can compete on their merits,’ Shawn McCoy, a spokesman for Romney’s Iowa campaign, said in a statement to The Des Moines Register.”
“‘Wind energy will thrive wherever it is economically competitive, and wherever private sector competitors with far more experience than the president believe the investment will produce results,’ McCoy said.”
The wind industry has been receiving generous subsidies for 20 years, and only accounts for 2.3% of America’s electricity. It’s time for the industry to stand on its own two feet and compete on its merits.
To that end, it is time to let these tax credits expire. Even better, we should end targeted subsidies for all energy industries, which is exactly what the Energy Freedom and Economic Prosperity Act does. The government needs to get out of the habit of picking winners and losers at the expense of the taxpayer, especially when we are clearly not getting a good return on our investment.