How Should Government Treat Energy Producers?

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How Should Government Treat Energy Producers?

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