• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Keep Alternative Energy Provisions Out of Stimulus

    All eyes are on the Senate this week as politicians in both parties seek to wrap up work on an economic stimulus package. With a deal already reached between President Bush and House leaders, it’s up to the Senate to work through several additional provisions lawmakers would like added to the agreement.

    Energy policy is one area of dispute. The Senate package includes a host of tax incentives to encourage the production and use of alternative energy sources like wind and solar power as well as the manufacture of energy efficient appliances and the construction of energy efficient homes.

    The policy question to ask is this: If these alternative energy sources and energy saving gadgets are as good as claimed, then why do they need so many federal handouts to catch on? The answer, of course, is that they are not as good as claimed, and indeed the debate over the merits of these measures should be fully explored in separate legislation, and not as part of this bill.

    The biggest provision is the extension of generous tax credits for electricity generated from politically correct wind power and other so-called renewable sources. Once upon a time, the industries producing alternative energy claimed that they would need such federal tax breaks for only a few years in order to get established, and then they would be able to compete with conventional energy. But decades later, they are still asking for government help, a tacit admission that after all those years (and all those tax dollars) alternative energy still can’t compete.

    The reality of wind, which by now has to be considered a mature industry, is that it is expensive, even with big taxpayer subsidies. It is also unreliable; the wind doesn’t always blow, and electricity is something the public expects 24/7. Taxpayers should not be forced to prop up energy sources that are of no benefit to them.

    Posted in Energy, Scribe [slideshow_deploy]

    One Response to Keep Alternative Energy Provisions Out of Stimulus

    1. David M Massacus says:

      The reason that alternative energy has not caught on as much as it should considering its potential to solve the energy problems of the United States of America, is a combination of competing interest, mainly from the oil companies to maintain the present system that keeps our country dependent on foriegn oil for the benifit of their own economic interest. Oil can be used for many things besides gasoline and heating oil, such as the manufacting of plastic and other synthetic materials that are derived from oil.

      Alternative energy, has the potential to meett the power needs of the United States of America, one report,eported by the Department of Energy on its website last year said that the best wind areas could supply 1 and 1/2 times the power output by the contiguous United States, if this potential was fully utilized. Wind is does not polute and creates no greenhouse gasses.Geothermal which uses the natural heat from the earth to produce steam to turn turbines to produce electicity is readily available as the wind, and waiting to be utilized to help solve our energy problem. The is also solar power;it does not polute. Other tecnologies such as oil from coal, and fuel cell to produce electic power directly from gases, as well numerous fuels, are technolgy waiting to be utilized.

      There has been increased use of alternative energy but there is a tendency to put off the realization of this potential as long as possible. This is a new idea, change is didicult.

      THE SOLUTION TO CREATING MORE ALTERNATIVE ENERGY:

      The are now many small companies who are manufacuring alternative energy products and creating new technologies that facilitate the production of alternative energy. Some of these are private businesses, which have demand that exceeds what they can produce. A few are public companies that sell shares of Stock to the public.

      It is my opinion that all alternative energy companies should be public stock companies, and their stock available from a stock exchange. This would encourage investment in lternative energy and speed the time up to when the United States of America could be Energy Independent!!!

      Just doing the above will help, but to really spark an alternative energy enthusiastic development, common people must get involved in the process of this wavee of the future. In order to do this I suggest the following:

      Everyone who has never invested in any stocks before will be given a free course sponsored by the government. Upon achieving a grade satisfactory to the program, This person will be given an amount of money which must be invested and kept invested for at least a year, all profits under this program would be tax free. People who achieved a level of gains, to be determined, (say 20%) would be eligible for the funds next year. After the second year the program would be reevaluated to determine how well it promotes economic growth.

      PURCHASE OF ALTERNATIVE ENERGY STOCKS ENCOURAGED

      Anyonewho purchased alternative energy stocks would have to pay only the cost of the price of the stock. There would be no transaction fees or commission fees to be paid by the investor. The government would reimburse the brokarage firms for the charges of transaction and commissions. This would create an incentive to invest in alternative energy, and create greater production of power to meet the energy needs of the United States of America, and free us from dependence on foriegn oil.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×