Dear Representative Pompeo:
On behalf of more than two million Americans for Prosperity activists in all 50 states, I am writing in strong support of the Energy Freedom and Economic Prosperity Act (H.R. 259). Your bill will put a stop to the federal government’s harmful practice of meddling in the energy market by eliminating all energy tax credits, across the board.
For decades the federal government has tried to encourage the production of various energy sources by providing special tax benefits, research and development funding, grants, loan guarantees, and more. Despite the poor past performance of these subsidy programs, Washington shows few signs of stopping this practice. The fiscal cliff deal that marked the start of 2013 extended a number of these targeted subsidies and special interest handouts.
Your bill provides a free market solution that would allow energy companies to compete for consumers’ dollars on a level playing field. It eliminates credits for ethanol; for “green” technologies like wind, solar, and biodiesel; for nuclear power; for electric vehicles; for hydrogen fuel cells; and yes, even for fossil fuels like oil, coal, and natural gas.
To offset the higher revenues that would result from eliminating these loopholes, your bill reduces the corporate income tax rate. This change will ensure that eliminating special provisions is not used as a guise to raise taxes. We don’t need higher taxes; we just need flatter less distortionary taxes.
Americans for Prosperity is proud to support H.R. 259. I urge your colleagues to support its passage, and I look forward to working with you in the future.
Director of Policy
Americans for Prosperity