Odd Bipartisan Group Cherry Picks Winners and Losers
When the government gets in the habit of deciding which businesses succeed and which don’t – we all lose.
Soon, a key Congressional committee may consider HR 1380, the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act, which would give preferential tax treatment in the form of subsidies for the production, purchase and use of natural gas vehicles.
HR 1380 has 180 co-sponsors from both sides of the aisle. Chris Moody at the Daily Caller points out the $5 billion bill “also brings together a host of strange bedfellows. Rep. Keith Ellison of Minnesota and Rep. Raul Grijalva of Arizona, co-chairs of the liberal Congressional Progressive Caucus, have joined Tea Party Caucus members like Texas Rep. Louie Gohmert and Rep. Joe Wilson of South Carolina as co-sponsors.”
Natural gas vehicles may or may not be the solution. But one thing is certain, government shouldn’t pick and choose which industries win and which industries lose.
This is a clear sign of favoritism, and one that will do no good for the economy. Take the ethanol subsidies, for example. The government has invested BILLIONS in corn-based ethanol, claiming that it would lower fuel prices and carbon emissions. What have we gained from this? Farmers are paid to grow astronomical amounts of corn and if you’ve noticed the fuel prices lately – they’re near record heights. Can anyone honestly claim this subsidy has worked as intended?
We need to send a clear message that preferential government treatment only leads to higher prices and less economic freedom. Government needs to get out of the way and let the free market and consumers decide which businesses succeed.
Congress needs to tighten the purse strings, end energy subsidies of any kind, and then evenly apply lower taxation across the board. A low tax, level playing field will allow entrepreneurs to thrive. This way, our economy will have a real chance to rebound.