Other Terms for Tax Increases, Expensive Energy

By August 1, 2007Energy, Taxation

From Speaker Pelosi’s summary of H.R. 3220, the New Direction for Energy Independence, National Security, and Consumer Protection Act.

To pay for these renewable energy and conservation incentives, the bill repeals approximately $16 billion in tax breaks for oil and gas companies that were given during an era of record profits. To ensure that oil and gas companies are paying their fair share of taxes, it closes a tax loophole that allows big oil and gas companies to game the system by understating their foreign oil and gas extraction income. It also closes the “Hummer” Tax Loophole, fixing a serious mistake that provides an extra tax incentive for businesses buying luxury SUVs, while exempting vehicles that are used for legitimate business purposes.

Given? Given? The federal government GIVES tax breaks? And they were “given” during an era of record profits, so the propery policy is to punish success?

Yecch. Iain Murray of the Competitive Enterprise Institute has some other thoughts, yecchwise.

Speaker Pelosi has released the text of the New Direction for Energy Independence, National Security, Really Good Eggs and Consumer Protection Act (I snuck something else in there – can you tell?). It weighs in at a table-breaking 888 pages. I’ll be back when I’ve finished reading it in a few months (Harry Potter this isn’t). Not sure how legislators are supposed to reach a conclusion on this by the time they’re supposed to vote on it on Friday, but perhaps that isn’t how legislation works these days. Vote first, ask questions later.

And rue the results for a long, long time.

The fundamental inconsistency is maddening: Complain about the high price of gasoline, and then increase taxes on the energy companies that produce the fuel.

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