The Dirty Secret Of Energy Subsidies

See, it’s still possible for Republicans and Democrats to work together on energy legislation.

On Thursday, the ethanol tax credit repeal won the support of 73 senators, including California lefty Barbara Boxer and Oklahoma righty James Inhofe, who typically spend most of their time annoying each other at Environment and Public Works Committee hearings. Chances are good that the repeal will blow through the House and land on President Obama’s desk before long.

What should be next? If energy subsidies are the ick flavor of the month, then put them all on the table. So far, however, the subsidies debate has amounted to the two parties talking past each other.

When it comes to tax dodges, Republicans tend to yell loudest about freebies for wind and solar plants, while Democrats drum out press releases about loophole candy handed out to profit-engorged oil companies. Also, Republicans have been stymied by Grover Norquist’s haranguing them that closing up tax loopholes would be the same as raising taxes.

After 70 percent of the Senate’s Republicans gave Norquist a sharp elbow in the ribs with their vote to repeal the ethanol credit, there should be less GOP inhibition about taking a hard look at “tax expenditures.”

The dirty secret of energy is that all forms of energy enjoy tax preferences and other subsidies of one form or another. Take your pick — efficiency, renewables, oil, coal, natural gas, nuclear -– not one of them stands purely on its own in the marketplace, free of subsidy taint.

The sooner both parties acknowledge that reality, the sooner they can have a rational debate about the role that subsidies should play, if any, towards meeting broader goals of ensuring America has ample supplies of energy that don’t cost an arm and a leg, don’t enrich unfriendly potentates and don’t leave future generations with an environmental mess to clean up.

SOURCE: frumforum