The Congress seems headed to passing legislation that will slap “Big Oil” with more taxes, more regulations, and artificial mandates such as setting percentages of electricity to be produced by alternative methods or standards that would not result in less energy usage.
On Monday, the National Taxpayers Union sent a letter to all Members of Congress urging that any energy legislation avoid “taxes, regulations, and subsidies” as ways to achieve energy security. NTU repeated the advice of 234 economists who concluded:
"By easing regulatory burdens, ending distortions that divert productive capacity, and allowing the price mechanism to do its job, Americans will have far more energy security at a lower cost than any package of taxes, regulations, and subsidies could ever hope to create."
Then on Wednesday, NTU issued this press release, which addressed a “new direction” from House Speaker Nancy Pelosi (D-CA). In the press release, NTU emphasized that:
“The legislation, unveiled yesterday, would unwisely penalize oil companies, impose harsh mandates on the auto industry, and heavily regulate private utilities -- all of which ultimately will hinder new developments in energy technology and hurt consumers.”
Environmentalists may be preventing exploring for more oil, e.g., in Alaska at ANWR, or the use of nuclear energy, but don't blame the 'tree huggers' this time, though. Tim Carney writes in today’s DC Examiner that the energy bill before Congress is splitting ‘Big Business.’ He writes:
“Prospects aren’t good for enactment of major energy legislation aimed at “greening” America’s power and transportation sectors, and much of the media are portraying it as a win for big business over environmental groups.
“That explanation is half right: The energy bill’s problems are largely due to opposition by utility companies, but the lobbying effort on the other side has been equally driven by big business seeking profits.”
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