Thanks to Brian Johnson for stopping by to post this. Brian is is a Federal Affairs Manager and Energy Policy Analyst at Americans for Tax Reform and has been quite helpful to me in understanding this compromise plan. — Erick
Yes my friends, I am speaking of the infamous “Gang of Ten” and their fantastically suicidal energy plan (well, at least for five of them).
The plan itself is drastically flawed. And the image they are cultivating while their brethren on the other side of isle (i.e. the House) fighting tooth-and-nail to have a real energy plan, is even more destructive.
Let’s look at their alleged “compromise” piece by piece shall we (and readers, try not to gouge your eyes out, or siphon your neighbors tank while reading):
The plan also would require automobiles to be more fuel efficient and would provide research money for improved batteries to move away from petroleum-products in cars: the plan calls for 85 percent of vehicles to run on non-petroleum-based fuel in 20 years.
First, when did it become the role of Congress to dictate the specific type of cars that private sector automobile companies can make? I must have missed the part of the US Constitution that said Uncle Sam owns 51% of GM’s stock. Ok, so you want to force auto-manufacturers to make more efficient cars? Cars that use less fuel are lighter. Lighter cars are made with weaker, thinner material. Thinner material + lighter cars = big bad crash, got it?
The plan is estimated to cost $85 billion, but would be offset with “loophole closers and other revenues,” including money from the new leases and from closing a oil industry manufacturing tax credit.
These “loophole closers” are directly referring to repealing Section 199 of the IRS. According to the American Shareholders Association, “Repealing the Section 199 Domestic Production Activities Deduction for domestic energy companies. This will raise taxes on energy companies, driving up the price of gas. For investors, it will cut into dividends and sink stock prices.” Bottom-line, repeal 199 and all of our 401(k)s tank, Americans lose their jobs, and the price of gas…well you don’t think the energy companies are going to bear that government burden all by themselves do you?
While Sens. Lindsey Graham, John Thune, Saxby Chambliss, Bob Corker and Johnny Isakson are now forced to go to the microphone and defend their position, the (dare I say), “real” Republicans are banning together.
Sen. Jim DeMint (R-SC) and Rep. Jeb Hensarling (R-TX) are calling on both parties on both sides to sign the petition to support Oct 1, 2008 as “American Energy Freedom Day.”
Not too mention the fact that many House GOP members are still on the House floor every day calling on Pelosi to come back from her book tour (not going too well I hear) so they can have a vote on drilling before Oct 1.
Comprehensive energy legislation should not attempt to define the market by creating “winners” and “losers”, but should institute sound, fiscally-responsible legislation that will decrease U.S. dependence on foreign oil and protect American jobs.