AFP Supports the Energy Freedom and Economic Prosperity Act
Jan 22, 2015 by AFPDear Representative Pompeo
On behalf of more than 2.5 million Americans for Prosperity activists in all 50 states, I write in strong support of your proposed legislation that would end all energy subsidies and tax credits, across the board. The Energy Freedom and Economic Prosperity Act would end all carve outs and giveaways to expensive and inefficient energy sources and make them compete in the free market.
For decades the U.S. tax code has served as the basis for handouts to energy producers getting breaks at the expense of the taxpayer. Those currently receiving favorable tax treatment include politically-connected companies such as plug-in electric and fuel cell vehicles, cellulosic biofuel producers, alternative fuel and alternative fuel mixtures, and wind farm developers. This legislation would end all these tax credits while preserving business deductions and importantly doesn’t favor any industry over another.
Lawmakers need to get serious about ending tax credits that do nothing except leave taxpayers holding the bill. A number of these provisions such as wind PTC, alternative fuel mixture credit, renewable and biodiesel, and biofuel credits were recently given a one year extension at a cost of over $11 billion. Besides being highly expensive and distorting the market, its bad policy. Companies should have to succeed on their own and not have to rely on taxpayers propping them up to the tune of billions of dollars. This legislation sends the message that it’s high time we end these tax breaks.
To offset the increase from closing these loopholes, your legislation would lower the corporate tax rate. This is a long-overdue policy change that would improve our country’s international competitiveness while also protecting American taxpayers from tax hikes. This proposal is revenue neutral and wouldn’t add to any future deficits.
Americans for Prosperity is proud to support your legislation ending subsidies and tax breaks for energy companies. We strongly urge your colleagues to support its passage, and we look forward to working with you on this important piece of legislation.
Sincerely,
Brent Gardner
Vice President of Government Affairs
Americans for Prosperity
