H.R.3308, the Energy Freedom and Economic Prosperity Act of 2011
Did you talk about Solyndra while eating turkey with your family yesterday?
Congressman Mike Pompeo (R-KS) introduced H.R.3308 two weeks ago. The bill will eliminate all targeted energy tax subsidies, including those for wind, solar, biofuels, oil, gas and others.
Americans don’t like all the special interest loopholes, and politicians keep talking about removing them; but this bill actually does that. Then it lowers the corporate tax rate so that these industries aren’t suddenly paying far more in taxes. The taxpayers stop subsidizing energy companies and our corporate tax rate becomes more competitive internationally. It’s win-win.
For too long, the government has used the tax code to reward politically-connected (and politically-correct) companies, thereby making the entire code confusing and unfair. From The Heritage Foundation’s Nicolas Loris:
“Targeted tax credits have become a popular and prevalent method for the government to award preferential treatment to certain energy industries. Over the past decade, the number of tax preferences for the production and consumption of government-picked energy technologies has expanded considerably. This favored tax treatment acts as a subsidy by favoring one industry or technology at the expense of another. Such political decisions misallocate resources, waste taxpayer dollars, and prematurely force technologies into the marketplace, while taking away the incentive to lower costs.”
Read more about this important legislation here.