(Alexandria, VA) – Today, the 362,000-member National TaxpayersUnion (NTU) organized the release of a coalition letter signed by nearly 30groups united in opposition to energy subsidy schemes in the federalgovernment. The letter, signed by such prominent organizations as HeritageAction for America, Taxpayers for Common Sense, FreedomWorks, Americans for TaxReform, Americans for Prosperity, Club for Growth, and the CompetitiveEnterprise Institute urges Congress to stop energy subsidies, includingprograms like loan guarantees and mandates, and begin the hard work ofdismantling existing preferences that have been built into law.
To Read the Entire Coalition Letter Click Here.
In their open letter to Members ofCongress, the signatories contended, “Instead of promoting a reliable andaffordable energy industry, the subsidy-first energy policy that has prevailedthe past three decades has created whole industries dependent on government andfocused as much on ensuring their share of taxpayer largesse as they are ondeveloping energy. This is no longer acceptable.”
NTU Vice President of GovernmentAffairs Andrew Moylan pointed to ethanol subsidies and nuclear loan guarantees asperfect examples of policies that place significant burdens on taxpayers with littleto no benefit. In addition to mandates that require its use and tariffs thatlock out less expensive alternatives, ethanol receives a $6 billion-per-yearsubsidy through the refundable Volumetric Ethanol Excise Tax Credit (VEETC). Inthe last few months, NTU has joined with as many as 90 ideologically diverseenvironmental, food, and free-market activist groups to oppose VEETC in thename of fiscal responsibility. “Ethanol has become a sad symbol of howpolitical clout can defeat even the most solid fiscal and scientific consensus,and we applaud the courageous legislative efforts of Senator Coburn andRepresentative Flake to put an end to this boondoggle once and for all,” Moylansaid.
Despite the existence of $50billion in federal loan guarantee authority for construction of nuclear powerplants, initiatives have been launched from both Congress and the White Houseto massively increase investment risk to taxpayers – moves that NTU and some ofits coalition partners have consistently opposed. Moylan stated, “Regardless ofone’s view on nuclear power’s viability as an energy source, repeated warningsfrom watchdogs like the Government Accountability Office and non-profitorganizations as well suggest that nuclear loan guarantees are financiallyrisky and prone to severe mismanagement. We cannot afford them, especially inthis fiscal environment.”
“For the first time in decades,Washington is beginning a conversation about cutting spending and reducing thesize and scope of our bloated federal government,” Moylan concluded. “Wastefuland inefficient energy subsidies represent an ideal place to begin thatconversation.”
The 362,000-memberNTU is a nonpartisan, nonprofit organization working for lower taxes, smallergovernment, and economic freedom at all levels. More information is availableat www.ntu.org.