Home > Uncategorized > Blown away by the attacks on wind-power subsidy – latimes.com

Blown away by the attacks on wind-power subsidy – latimes.com

October 25, 2012 Leave a comment Go to comments

It’s hard to know what to say about this argument, other than that it should be in the dictionary as an illustration for “cynical.” No industry has benefited more than oil and gas from continuing government subsidies. The wind tax credit costs about $1 billion a year.

How do coal, oil, gas and nuclear do? Very handsomely, thank you.

Fossil-fuel producers reap tax accounting breaks such as the depletion allowance, which is worth an estimated $1 billion a year, according to the Environmental and Energy Study Institute, a Washington think tank created to advise Congress on energy policy. Tax-expensing options for drillers bring them $1.9 billion a year. Relief on royalty payments due to drillers on government property: $53 billion over the lifetime of the leases. Partially as a result, the U.S. government’s take from its oil and gas leases is among the lowest in the world, the Government Accountability Office found in 2007.

Then there’s coal, the owners of which get to classify royalty income as capital gains, therefore paying a preferential tax rate. This break was enacted in 1951 as relief from the high taxes levied to pay for the Korean War (paying for wars from tax revenue, not by borrowing, was a quaint practice of that era). Bizarrely, it never went away and today is worth as much as $170 million a year to the coal industry.

Finally, there’s nuclear, which over its fledging years received subsidies that dwarf all others, while producing a small fraction of the energy per subsidy dollar of any other fuel source. To this day, according to a study by the Union of Concerned Scientists, the nuclear power industry receives subsidies worth as much as 11.4 cents per generated kilowatt, or five times as much as the 2.2-cent wind tax credit. (The figure includes such breaks as the federal cap on the industry’s liability for nuclear accidents and the government’s shouldering of waste management costs.)

What gives away the game on the real goals of the lobbying against the wind credit is that for all their talk about letting “the market” dictate energy policy, Romney and the Koch types never seriously advocate ending the existing subsidies for oil, gas or nuclear. Those politically connected industries are the antithesis of market operators, and their real goal is to tilt the playing field back toward the past, not the future.

via Blown away by the attacks on wind-power subsidy – latimes.com.

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