About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

163 IRET Congressional Advisory 1 (2003)

handle is hein.taxfoundation/iretcgadv0160 and id is 1 raw text is: INSTITUTE FOR RESEARCH ON THE ECONOMICS OF TAXATION IRET is a non-profit 501 (c)(3) economic policy research and educational organization devoted to informing the public about policies that will promote growth and efficient operation of the market economy. November 20, 2003 Advisory No. 163 ENERGY BILL A WASTE OF ENERGY The energy bill conference agreement has been passed by the House and is now before the Senate. The energy bill contains a handful of economically beneficial provisions that remove legal and tax barriers to efficient energy production and distribution. These merit passage. Unfortunately, the rest of the bill is a grab bag of expensive subsidies and credits to prop up uneconomical activities, resulting in higher than necessary energy costs for the nation. The bill should be returned to the conference with instructions that it be stripped of these subsidies and credits. The energy bil The meritorious provisions of economi should be then be passed on provisions... [ their own. 11 Provisions barriers production of energy: that remove to efficient and distribution 3 Et U StU subsidies and uneconomical in higher tha costs for the n Several tax provisions would reduce distorting excise taxes and would reduce tax penalties stemming from lengthy depreciation periods (moving closer to expensing, the economically optimal write-off arrangement). The bill would repeal the rail diesel fuel excise tax, and the portion of the inland waterway barge fuels excise tax in excess of amounts devoted to maintaining the waterways. It would shorten recovery periods for various classes 1 contains a handful ically bene ficial Ulke rest of the bill bag o f expensive credits to prop up activities, resulting n necessary energy ation. of gas transmission lines and electricity transmission property. It would permit small producers to expense capital costs incurred complying with EPA sulfur regulations. Provisions that foster inefficient energy production or use: The electricity provisions would repeal the Public Utility Holding Company Act of 1935 to facilitate mergers and acquisitions, permitting a broader range of investors to participate in improving the nation's transmission grid, strengthening the industry's finances, and achieving economies of scale in management and production. Other provisions, somewhat watered down from previous efforts, would improve the reliability of the power grids by strengthening the authority of the regional grid operators. Almost everything else in the bill promotes economic inefficiencies that we can ill-afford at any time, but especially when we face budget deficits and international conflict. These inefficiencies include artificial subsidies and credits for uneconomical conservation outlays, for uncompetitive alternative fuels, and for research and demonstration programs that could be funded by the industries involved if they were worth doing. The bill would be better without them. Stephen J. Entin President and Executive Director Note: Nothing here is to be construed as necessarily reflecting the views of IRET or as an attempt to aid or hinder the passage of any bill before the Congress.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most