There is a growing movement to end all federal subsidies for energy as the country’s national debt nears $15 trillion.
One report released by a coalition of free-market analysts estimated there was $380 billion in government subsidies for energy in 2011.
The Green Scissors 2011 report estimated that $53 billion was lost in oil and gas revenues from royalty-free leases in federal waters and another $6 billion a year in ethanol tax credits.
Americans for Prosperity came to Michigan this Saturday as part of its Energy for America Tour. The tour continues Monday with stops in Portage at noon and Benton Harbor at 5:30 p.m. AFP’s website described The Energy for America tour as about “getting government out of the free market.”
GOP presidential candidate Rick Perry has pledged to end all federal subsidies for energy.
Daniel Kish, senior vice president for policy at the nonprofit Institute for Energy Research in Washington, D.C., said the end of all federal energy subsidies is more likely than ever, “because it is quite evident we are running out of money.”
Kish said ending federal energy subsidies would lead to “consumer-based decisions,” not “big-government-based decisions.”
Alternative energy wouldn’t exist without subsidies and mandates, Kish said.
“Alternative energy is a creation of politicians and taxpayers’ money, not taxpayers exercising choice in a free economy,” Kish said in an email.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.