Energy Policy
(He will be back to discuss health care.)
Just when I thought Democrats were going to show some capacity for leadership, for economic prosperity, for new direction, for peace, etc; they go ahead and drop the nuclear weapon of economic destruction – tax increases. Oh, they buried it deep and they covered it good. See, they call it the CLEAN Energy Act of 2007, and it never, ever, ever calls directly for a tax increase. It does extend the period of deduction for some expenses; it forces oil companies to renegotiate leases that have been on the books since 1998 and 1999 at higher rates; and it eliminates tax deductions for oil companies that are extended to all manufacturing companies.
As the US Chamber of Commerce states in their letter of opposition to this atrocious act of economic violence, “this act will further impede domestic oil and gas production.” When Congress gets involved in the economy by increasing the costs to companies and denying tax deductions it has two major impacts. First and foremost, the companies just pass the cost on to the people who buy the products – us! We will pay for the increased cost of oil and gas extraction and exploration with higher prices at the pump. Second, it creates an uneven economic playing field for US companies in the oil and gas marketplace. This serves to drive production overseas and away from the United States. We will depend more on foreign sources thanks to this poor legislation. And you global warming, earth loving types out there should be alarmed anytime we push oil production overseas – you think third world countries have the same anti-spill and drilling site cleanliness standards that the US does?
I am appalled at another confirmation that the Democrats either fail to understand the economy or they are turning deaf ears to the outcry of the American people for relief from high prices at the gas pump. They should start by trying to cut taxes on oil companies and encourage exploration and development of domestic sources. If we want to encourage long-term development of alternative sources for energy then so be it, but ill-conceived and poorly constructed legislation will provide neither short-term relief nor long-term solutions.
Let us begin our energy reform by realizing two key things.
One, the alternative fuel sources touted both by the left and by the President are still theoretical, not cost effective and closer to science fiction than solid policy. In his comments on ethanol production, the President might as well have called for 1 zillion barrels of ethanol, while placing his pinky next to his lips with a smirk, because ethanol experts reacted just like the table of world leaders in Austin Powers, “There isn’t 1 zillion barrels of ethanol in the whole world!” We can not grow enough corn to make enough ethanol to make a difference in our energy needs, at least not with current technology. It will take breakthroughs in the future and taxing our limited resources of today only squeezes consumers; it does not, as liberals erroneously believe, create vast pools of tax revenue from the bloated profits of oil companies with no economic consequences.
Two, if the United States wants a practical, cost-effective and tested method of generating more energy without burning fossil fuels, we should take a page from the Europeans and the Japanese. They have learned that strategic development of nuclear power can be clean, quiet and efficient. We are still plagued by the ghosts of our history where reactionary opinions against a fledgling technology and mass protests have seemingly left an indelible, negative impression. We must overcome this foolish prejudice and embrace the progressive and creative ideas of new technology.
Labels: energy
