Energy Independence: Government Should Neither Inhibit Nor Subsidize Any Type of Energy





by Ron Paul

As the economy continues in its downward spiral and talks in Congress about reducing spending have only amounted to political theater, the subject of how the tax code treats energy has become a topic of controversy. Specifically, should we subsidize, enforce mandates, or give tax credits and deductions to industries like ethanol and natural gas? Having a thriving energy market domestically is a good thing and something the government should not hinder. Not only would decreasing our dependence on foreign oil simplify our foreign policy, but it would greatly enhance our anemic economy at home.

Of course, the government should neither inhibit nor subsidize any particular type of energy. While many people agree with that statement, there is much confusion over the difference between government subsidies and tax credits or deductions. The difference is night and day, yet so many times they are all lumped together as evil government handouts. A subsidy IS a government handout. It amounts to the government taking money from the people and giving it to a favored interest. It is the worst sort of market manipulation and it is something I can never support. This kind of government mischief is anathema to the Constitution and the principles of freedom and the free market.

By contrast, with tax credits and deductions, industries, business, and individuals simply get to keep more of the money they have earned. Ideally, the tax code should not be used for social engineering, but, until we have true tax reform, I will always support tax credits and deductions that keep more dollars in the private sector where they are spent, saved, or invested. This means I will support tax credits and deductions for energy producers, farmers, homeschoolers, family child care expenditures, expenses of evacuees from disaster areas, and even adoption expenses. I’ve almost never met a tax cut, deduction, or credit I didn’t like. Any measure that keeps money in the private sector to spend, save or invest, rather than allowing the government to waste or misallocate is a win for the economy.

Inequities in the tax code dealing with tax credits should be solved by giving all participants equal treatment. Removing

I oppose ethanol mandates because I do not think anyone should be forced to use or buy ethanol. Ethanol mandates often serve as corporate welfare for big agriculture ethanol producers. The marketplace should decide whether or not to use ethanol, and producers of ethanol have to discover if they can produce it at a price that makes good business sense. No industry should be allowed to use legislation to create a “market” for its products. The real reason ethanol mandates continue to surface in federal legislation is that agribusiness continues to have one of the most powerful lobbies in Washington.

Furthermore, while I do not support providing federal grants to any industry, I do support the tax credits contained in the NAT Gas Act, HR 1380. These credits reduce taxes for the production or purchase of vehicles that run on American-made natural gas. These credits are not subsidies. Of course, we should repeal federal barriers to energy production and reduce taxes on all forms of energy. Therefore, I have also introduced the Affordable Gas Price Act HR 1102 which would remove governmental barriers to offshore drilling, encourage private investment in new refineries and suspend taxes on gasoline when the price at the pump reaches a certain threshold. Lowering taxes to encourage the domestic production of energy and getting government out of the way of the American energy market is not a government giveaway; it is the way it should be in a free country.



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158 Comments:

  1. ProgressiveInAmerica

    Ron Paul Revolution? Is racism, slaveryism, terrorism, homoism, atheism, liberalism, sexism, Stalinism, fascism, Satanism, communism, pacifism, Marxism, creationism, cowardism, Hitlerism, queerism, Islamofascism, bigotism, antisemitism, confederateism, autism, Naziism, homophobicism, poopism, and Maoism your idea of revolutionary thought?

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  2. Please please please! Everyone listen! We can make this guy president. That would be a great day for America. I've noticed that many young people seem to adire Ron Paul. The problem is that young people dont tend to vote as much as the older community. Please spread the word Ron Paul and vote!

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  3. Please please please! Everyone listen! We can make this guy president. That would be a great day for America. I've noticed that many young people seem to adire Ron Paul. The problem is that young people dont tend to vote as much as the older community. Please spread the world Ron Paul and vote!

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  4. Can any one name or cite another politician that keeps you apprised of what your Gov is doing with your money every week ? ..

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  5. your my boy ron!

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  6. ProgressiveInAmerica

    Ron Paul wants us to keep buying oil from his homeland, the Communist Islamic Republic of Nazi Iran.

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  7. End the IRS & the FED!!!

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  8. L00K Ron Paul is all about freedom + get the Gov. off our Back Now!

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  9. Alright people the time is now just do what you can when you have a free moment. I order Ron Paul signs and posted 2 of em already the busiest streets in my town lol. And it felt so good driving away! SO LETS DO IT TOGETHER! ONE FOR ALL AND ALL FOR ONE

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  10. ronpaul2012 . com to support ron paul for president in 2012. donate now

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  11. ronpaul2012 . com to support ron paul for president in 2012. donate now

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  12. ronpaul2012 . com to support ron paul for president in 2012. donate now

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  13. ronpaul2012 . com to support ron paul for president in 2012. donate now

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  14. Make ethanol out of sugarcane or hemp.
    It is cheaper and would not require the TAXPAYERS money.
    Domestic ethanol is good, but produce it wisely.

    and as Ron Paul said.
    The US needs to grow hemp again.
    Ford had a hemp car once. made from AMERICAN materials running on AMERICAN hemp fuel, not terrorist oil

    whe was right to oppose the patriot act
    He was right as he was against the iraq war.
    he was right about the collaps of the financial sector.

    time vor REVOLUTION

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  15. Hi
    I just had this idea, what if someone who is computer s.a.v.v.y decides to set up a LIVESTREAM webcam on a website, and start streaming from the biggest citites in US. From Los Angeles to New York. The cameras would be set up in the biggest park or squares, (a la' Tahrir Square) and then announce a gathering every Saturday for RON PAUL REVOLUTION UNTIL ELECTION DAY. This would most certainly be a resemblance of the 1960's as antiwar, libertarians and all others gather everysaturdat

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  16. There is a major push from who knows where that is vilifying the use of oil. Took the kids to see Cars 2 this weekend & the bad guys owned oil rigs & were trying to sabotage bio-fuel. I don't know if the Ron Paul vision for America is possible anymore :(

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  17. Expanding energy is the mass of the vacuum of space within an object being accumulated or released at the speed of the vacuum of space.

    Energy does not come from oil. It comes from the vacuum of space contained within the oil; therefore, energy comes from thin air.

    It will be one year without government involvement and we will be there.

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  18. where can i donate? we want you for president. dont give in this time man!

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  19. It just brought to mind the BP oil disaster. It happened just when people were really talking about drilling for oil here at home. Makes me wonder..

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  20. A man sent by providence to shatter the left right paradigm and to restore the republic

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