Thursday, June 21, 2007

It's Time To End Oil Subsidies

Today senate republicans blocked a proposal that would have funneled $29 billion to subsidize companies making windmills, hybrid technology, and other renewable energy sources. The cost of this would be paid for by taxes on oil companies.
But many Republicans said it was too harsh on the oil industry and could lead to less production and higher gasoline prices.

The struggle over the tax provision signaled that Democrats may have a hard time pushing through the broader energy bill, which tilts heavily toward promoting energy conservation and renewable fuels and away from support for traditional fossil fuels.

The part about less production and higher gasoline prices is nonsense, but I'm not sure taxing one group to finance another is the way to go either.

The democrats should be working on eliminating oil subsidies and advantageous tax law as it applies to the oil companies. The republican argument that the oil companies need incentives to explore for new oil is ridiculous on it's face. There is simply not enough unexploited oil in this country for any subsidy to make a difference in the cost of crude oil.

The bottom line is this, we are buying too much oil from the Middle East and to lower our consumption we need to raise the price. Raise the tax on gasoline to finance research and subsidize the work on renewable resources, but with strict controls. The market must determine the success of any new technology. Further, use the taxes to repair our infrastructure.

It is time to end all corporate welfare and to deal with our addiction to oil. We are subsidizing our enemies everyday at the gas pump. It's time to recognize this and deal with it.

Jim Martin

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1 Comments:

Anonymous lester said...

by subzidizing other industries?

2:58:00 PM  

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