President Trump, end ALL subsidies, not just renewable energy

“President Trump’s administration is reportedly seeking a 72 percent cut to the budget of Department of Energy programs related to energy efficiency and renewable energy,” The Hill reports. “Draft budget documents obtained by The Washington Post show the Trump administration will ask for $575.5 million in spending for the Energy Department’s Office of Energy Efficiency and Renewable Energy. The office’s current spending level is set at $2.04 billion for the fiscal year.”

That’s a great start and we should not just isolate this aspect of the energy sector; it should extend to ALL sectors. Renewable energy subsidies distort the free market and keep electricity prices high for all of us. This distortion is true in all areas of government subsidies.

Farm subsidies, crony capitalism, sugar, golf courses, corporate welfare, oil, etc. The list of subsidies provided by the federal, state and local governments is nearly endless. It has become so entrenched in our society that we no longer know the true cost of anything Americans purchase.

So, while the different levels of government in our country try to push various agendas to make our world “better,” they all-to-often go the wrong way and almost always with unintended consequences. Additionally, one cannot forget the corruption that quickly follows most subsidy programs.

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My letter today to Florida Governor Rick Scott regarding corporate welfare (specifically the movie industry)

Dear Governor Rick Scott,

While I am happy to offer a warm Florida welcome to new economic activity, the research shows that corporate handouts do not create jobs or otherwise justify the cost to taxpayers.

As you know, the state’s own economists recently released a report showing that the existing film tax credit makes no significant impact on tourism and has a measly return on investment of 43 cents to the dollar. No bank or investor would accept that poor of a return – why should taxpayers?

While taxpayers are getting the short end of the stick, Hollywood executives are padding the profits for films on the backs of Florida taxpayers.

Instead of trying to lure Hollywood big-wigs and sports arenas to our state with expensive handouts, let’s make our state a better place for all entrepreneurs by keeping the tax rate low and evenly applied. Trying to pick economic winners and losers may sound like an exciting blockbuster, but in practice it’s a box office bust.

I’ll be watching how you vote on this issue and hope you will prioritize taxpayers over the special interests.

Sincerely,

Karl Dickey

SEE THIS LINK FOR A HANDY INFOGRAPHIC:  http://americansforprosperity.org/florida/files/2015/01/Hollywood-Handouts-Edit.pdf