Recorded on April 27, 2011
It's time for common sense; I'm Ernest Istook.
We need legitimate debate on government subsidies for energy. But it's being distorted to push an agenda that attacks the fossil fuels that provide most of our energy, and to further an agenda of raising taxes.
Tax breaks for oil and gas are based on what's called the depletion allowance—which also applies to industries like mining and timber. But oil and gas is being singled-out as supposed villains rather than having an even-handed discussion of our tax code.
The largest energy subsidies don't go to oil and gas—they go to their competitors—ethanol, wind power and solar power. Yet why should we subsidize ANY form of energy?
Plus an important truth is being overlooked—higher taxes on oil and gas, or anything else, won't bring down the price of gasoline by a single penny. Instead, it would make it more expensive.
For common sense, from The Heritage Foundation, I'm Ernest Istook.