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.


  • SilentEagles

    There still a chance for the USA to pay up their national debt. We got a lot of GOLD in Fort Knox. We use those gold to pay up our nation debt.

  • bossrube53

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

  • bossrube53

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

  • adkpinecone

    i just made the likes 225 😛 w00t

  • romerorichards

    Turn $10 into $199,000 join for free to lock in your place before the launch. autoxten. com/romero88

  • tsaj9321

    The economy is not “continuing in a downward spiral.” The economy expanded at an annualized real rate of 1.9% in Q1 2011. Gross private domestic investment increased 12.4% from the proceeding period. Look up “Table 1.1.1. Percent Change From Preceding Period in Real Gross Domestic Product ” on Google. Ron Paul is a liar.

  • RightfullyRed

    Im confused, is the evol supposed to mean evil or love?

  • RightfullyRed

    Im confused, is the evol supposed to mean evil or love?

  • USFullOfLies

    U.S. Invasion of Libya Set for October

  • USFullOfLies


    China Issues Ultimatum to United States

    Congress Vote On Declaration Of World War 3
    blog.alexanderhiggins. com/2011/05/15/congress-vote-declaration-world-war-3-endless-war-borders-clear-enemies-22785/
    The site was recently got hacked.
    Get yourself prepared.

  • USFullOfLies

    U.S. 4-star General Wesley Clark (Ret.), explains that the Bush Administration planned to take out 7 countries in 5 years: Iraq, Syria, Lebanon, Libya, Somalia, Sudan, Iran (2007 up to 2012)
    “Japan’s government, threatened with more HAARP attacks, pays 60 trillion yen to Feds”
    eclinik.wordpress. com/vital-issues/ben-fulford/japan’s-government-threatened-with-more-haarp-attacks-pays-60-trillion-yen-to-feds/

  • Douglas

    Yea, but only through constitutional Monetary Policy will things get naturally back to normal for US and then, subsequently, for the rest of the World, slowing down to the Natural pace of real Natural Economic Expansion through properly represented Monetary Issuance, thus is the Great Lesson fullfilled. This will eliminate over competitions and over consumption and those nothing for something usurers will now have to learn how to work for a living. Praise God, Christ is King of Kings.

  • MoneyBomb!
  • Jim

    LOL, looks like the trolls are out in force.

    Just goes to show you that Ron Paul has the status quo sweating. Good, they need to sweat.

    God bless America.

    • Michael

      Are you completely deluded Jim. Ron Paul is so not a threat now to anything but himself. His agenda is nothing more than corporate welfare disguised as getting rid of taxes. And the lemmings like you buy it hook, line, and sinker.

      The upside of all this is that it makes good entertainment hearing how the little jerks have been bamboozled by the constitution waving and flag waving. When will you ever learn?

      • Jim

        Not a threat huh? Funny, more and more trolls come in here trying to discredit him.

        And isn’t it funny how now what are considered ‘mainstream’ candidates and politicians, are starting to sound like Ron Paul, using his language.

        I read history bub, the more I read, the more I realize, this is just a continuation of something that has been going on for centuries.

        The rich elite of the world, who up until fairly recent history, have been the nobles, with a few of the rich merchant class, are the ones trying to maintain their power and wealth.

        They believe they have the obligation and ability to rule the world. Noblesse oblige.

        The bible is pretty clear about what the outcome will be. I am just not sure how it will play out here in America.

        According you, I guess we should all just shut up and be good little vassals and serfs. Do what we are told, when we are told, how we are told.

        I bow before NO MAN!

        I believe in my constitution. We have forgotten and ignored God, now we pay the penalty.

        One simple rule would cure most everything if people actually followed it, DO UNTO OTHERS, AS YOU WOULD HAVE THEM DO UNTO YOU.

        You are the one who is deluded if you believe your own propaganda. I have read history, books like ‘The Prince”, and many many others. I have even read meeting minutes of an old Bilderberg meeting.

        I gain insight to tactics, methods, trends and mindsets, by reading things. I have been reading this kind of stuff for over 40 years. I have learned a thing or two.

        Truly, there is nothing new under the sun. It is the same old game, same old tricks. The game of chess and power plays. Power and money.

        It’s ok when you have a good leader, they however have been few and far between, we usually end up with tyrannical despots.

        You think you are talking to just some run of the mill average non thinking peasant. I am not. I think, I discern, I weigh matters, I compare, I extrapolate, I am.

        • Michael

          Jimboy, I’m only trying to help you. Don’t waste your money on Ron Paul. So read some more Jim but don’t read bible sky fairy tales. Those who do that already have two strikes against them in the brains department.

          Really Jim, I would gladly give you 100/1 odds against Ron Paul becoming anything more than a bad wet dream of suckers like you. His trouble is, for every good idea he has, he has 10 bad ones.

          Oh, and Jim, note that I don’t get near as many thumbs down now. Seems even this site has more ron paul opposition than support. How stupid are you Jimboy?

  • tj

    Let’s be clear…a tax break is NOT a subsidy. Ron Paul has been accused of subsidizing Big Oil. He does not. When figuring one’s income, a business must capitalize expenses that will take several years to reap the benefits from. This means an oil company that spends money building an oil rig, cannot claim the entire expense all in the first year. This expense must be spread out over several years…even decades. As an enticement to promote drilling, Congress has enabled oil companies to speed up the use of these expenditures. It does not mean they are getting out of paying taxes.

    Ron Paul 2012…you are either for FREEDO or you are not.

    • Michael

      OH yes it does mean that they will get out of paying taxes. There’s no way to hide the obvious facts. But keep right on trying!

    • Michael

      You’re right tj, a tax break is not a subsidy. But when you add it all up you support ron paul because he’s intending to place the tax burden on stupid little people like you. You people really must start to wise up a little.

  • jeffy12

    TYRANNY IN ACTION – SPREAD THE WORD !! /watch?v=E8hpliqTTnw

  • Kardiatheon

    When will be call out Bush?

  • Casisevillano

    Ron Paul is always amusing. Not very bright and often just out right stupid. But then, that is why Paul can’t win outside of Texass. Why must Paul make it so clear he does not comprehend the Constitution.

    • Jacob

      Give us an example!

  • ImNotVoting4RonPaul

    Ronny you are doing a great job with a current 1% CHANCE of winning the nomination. Looks like your extreme views are really connecting with the mainstream. Keep it up buddy! Doing just awesome. Only 49% more to go. Have fun counting the gold in Reserve.

  • duhg599

    I’m genuinely curious and wondering if anyone can answer this for me; my understanding is that the effects of tax credits fundamentally amount to a similar end result as subsidies – the gov’t is allowing an economic benefit to one area of the economy that it isn’t offering to the entire economy. Wouldn’t this artificially direct more resources to that one tax-credited area that wouldn’t have gone there otherwise? Seems like gov’t market manipulation, which is what we’re trying to avoid.

    • Michael

      Hey doug, don’t ask embarrassing questions that Ron Paul needs to avoid. Trust in your own common sense because you are right on the money.

      I’m impressed at how many Ron Paul followers are finally seeing through this little scam article by good ol Ron.

    • Jacob

      This is a good point! My understanding is that Ron Paul would work to reduce taxes across the board, even ending the income tax. As far as I can tell, that’s pretty fair.
      Help me out: are tax credits the same as a tax break?

      If so, then I see this difference between tax credits and subsidies: tax credits allow a person or company to use more of their earned income for growth while a subsidy takes income from person A and allows person B to use it for their growth. A subsidy is a double whammy because it literally robs peter to pay paul while a tax credit allows peter AND paul to keep more of what they earn.