Groucho Marx, not exactly known as a political philosopher, nevertheless once aptly observed that politicians look for problems, find them everywhere, misdiagnose them, and apply the wrong solutions. A recent letter on tax reform priorities signed by 16 Democratic members of the House of Representatives leads me to believe Marx may have missed his calling. The goals of tax reform are supposed to be simplification, a level playing field, and increased corporate competiveness. What the House Sustainable Energy and Environment Coalition proposes is the polar opposite.
Their proposal is an example of the willingness to punish the success and reward the failure of certain sectors of our economy. The focus of the letter is incentivizing “clean energy” but at its core it is nothing more than hostility toward fossil fuels and a fundamental misunderstanding of tax provisions for the energy sector. Unfortunately, this is nothing new and you would think by now proponents of this misguided approach to tax policy would have learned their lesson. But they haven’t and so they continue to propose the same ideas over and over, expecting a different result. The authors do reveal, however, that in addition to their hostility towards fossil fuels, they are using tax reform as a means of capturing more revenue to pass out to the chosen and favored few.
The basis for their “environmental tax priorities” includes discriminatory proposals to drive oil and gas out of our energy budget while attempting to replace them with alternatives. Since the great recession, the oil and gas industry has been a shining example of job creation and increased investment. The icing on the cake is that the energy renaissance has not only reversed the growth in imports but has made the United States the world leader in natural gas production.