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Palin: End All Energy Subsidies
IBD Editorials ^ | June 1, 2011 | Staff

Posted on 06/01/2011 5:55:00 PM PDT by Kaslin

Energy Policy: The former governor of energy-rich Alaska calls the administration's bluff: End tax breaks for all forms of energy, she says, and let the free market pick winners and losers. End the ethanol pandering too.

She isn't running, or riding, for president, at least not yet. But at a stop on her One Nation bus tour, Sarah Palin offered a winning idea for an economy strapped for energy and jobs and saddled with unsustainable debt.

"I think all our energy subsidies need to be re-looked at today and eliminated," Palin told Scott Conroy of Real Clear Politics during a quick stop at a coffee shop. "And we need to make sure that we're investing and allowing our businesses to invest in reliable energy products right now that aren't going to necessitate subsidies because, bottom line, we can't afford it."

These would be genuine, private investments that create wealth and produce tax revenues, not government subsidies to politically favored energy sources that consume taxes and reduce wealth. Palin, in stark contrast to former Massachusetts Gov. Mitt Romney, took particular aim at ethanol subsidies that cost taxpayers about $5 billion last year.

Democrats like to rail against "oil subsidies," the elimination of which they say would save about $20 billion over 10 years. That's less than the $26 billion the Energy Department, which produces no energy, consumes in one year. Never mind these annual tax credits are afforded to almost every other industry.

The government is hardly losing money on the deal considering that, according to the American Petroleum Institute, the oil industry generates almost $100 million of revenues per day in income taxes, excises and royalties for the federal government. That's on top of an effective 55% corporate tax rate that is higher than in most industries.

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; Government
KEYWORDS: alternativeenergy; coal; drillbabydrill; drilling; energy; ethanol; greenjobs; ibd; ibdenergy; oil; palin; palin2012; romney; sarahpalin; solarpower; wind

1 posted on 06/01/2011 5:55:02 PM PDT by Kaslin
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To: Kaslin

Amen I say


2 posted on 06/01/2011 5:57:34 PM PDT by yldstrk (My heroes have always been cowboys)
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To: Kaslin
Wow...just the same policy as Obama. Nice job.

Kill all the incentive to look for oil. They (Oil Companies) will be glad to take their toys overseas. Sheesh.

3 posted on 06/01/2011 5:59:22 PM PDT by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
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To: yldstrk

Energy Policy: The former governor of energy-rich Alaska calls the administration’s bluff: End tax breaks for all forms of energy, she says, and let the free market pick winners and losers. End the ethanol pandering too.


4 posted on 06/01/2011 5:59:43 PM PDT by scooby321
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To: Kaslin

Wow.

The dems love to run as hope and change, but Palin is the real deal.

She’s the REAL maverick outsider. The insiders are probably looking at her, and shaking in their boots.


5 posted on 06/01/2011 6:00:35 PM PDT by I still care (I miss my friends, bagels, and the NYC skyline - but not the taxes. I love the South.)
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To: Kaslin

First thing she has said in a while I can get behind her on. Overall though, I think she is becoming an attention whore. She needs to put her hat in the ring or step out of the limelight.


6 posted on 06/01/2011 6:04:06 PM PDT by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: DonaldC

I don’t think I would use those words, but she does seem to be in a mode of mega self promotion right now.


7 posted on 06/01/2011 6:08:03 PM PDT by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
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To: catfish1957
Wow...just the same policy as Obama. Nice job.

JackAss post of the day.

That's only part of Obama's policy.

You really have not been paying attention! The incentives really aren't working and definitely are not producing competition between the few members of the Oil cartel.

Everyting else about Palin's approach, including this statement of hers, is free-market based, drill here drill now.

Completely opposite to Obama's approach.

A President Palin would knock down ALL of the impedences to competition in the Oil exploration and drilling markets and would work on increasing dramatically domestic Oil production driving the supply of Oil through the roof and the price through the floor.

Don't be a JackAss!
8 posted on 06/01/2011 6:09:41 PM PDT by SoConPubbie
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To: DonaldC; catfish1957

She doesn’t give them the itenary, but the media chooses to chase her around anyway. Does that sound like excess self-promotion to either of you ?


9 posted on 06/01/2011 6:11:34 PM PDT by MetaThought
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To: DonaldC

Please refrain from using ugly language. Would hate for you to get zotted. BTW, how does she convert the masses without getting into the public? Hmmmmm?
She is running. She is a fearless leader and most excellent role model. She even taught me something today.


10 posted on 06/01/2011 6:15:16 PM PDT by libbylu (Sarah is running!)
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To: MetaThought

Didn’t she announce her so called tour was going “national”? Sounds like a vague itneary to me.


11 posted on 06/01/2011 6:16:37 PM PDT by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
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To: SoConPubbie
Hey bud, you are pretty funny you arguing with someone who has worked in the oil profession for 30 years.

These incentives help drive domestic production, which in turn helps, local, state, and overall national economy. You know or understand little of the dymanics involved with drilling. There is a huge upfront cost and risk involved deploying equipment of this type. If there is more incentive economically to drill elsewhere, they'll do it.

Anyway, you lost me with the name calling doufous, and while she is at it, maybe President Palin can invoke an Oil Windfall Profit Tax, like she did in Alaska.

12 posted on 06/01/2011 6:26:32 PM PDT by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
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To: scooby321
Energy Policy: The former governor of energy-rich Alaska calls the administration’s bluff: End tax breaks for all forms of energy, she says, and let the free market pick winners and losers. End the ethanol pandering too

I got a better idea. Let's end subsidies for absolutley everything. I mean everything

13 posted on 06/01/2011 6:29:12 PM PDT by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
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To: catfish1957

It will remove all of those incentives for renewable boondoggles which dwarf the oil tax incentives. They don’t drill because the Interior won’t let them.

Pray for America


14 posted on 06/01/2011 6:37:37 PM PDT by bray (Hey Country Club, hold Sarah's coat while she kicks his ____.)
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To: SoConPubbie
JackAss post of the day

Potty mouth.. Don't resort to name calling, that's for RATS that have no argument. When I see name calling, I don't bothering reading the rest of your comments....

15 posted on 06/01/2011 6:59:14 PM PDT by 11th Commandment (http://www.thirty-thousand.org/)
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To: 11th Commandment

Can u haz a grammar?


16 posted on 06/01/2011 7:35:57 PM PDT by Oztrich Boy (Monarchy is the one system of government where power is exercised for the good of all - Aristotle)
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To: Nachum; markomalley; Clairity; Carlucci; grey_whiskers; meyer; WL-law; Para-Ord.45; ...

Energy ping


17 posted on 06/01/2011 7:44:04 PM PDT by raptor22 (Join me on Twitter @gerfingerpoken)
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To: DonaldC; presently no screen name

My son and I were discussing this today and we think that she’s up to something. It’s not that she’s an attention whore.

She knows what she’s about, and what she’s doing, she’s doing for a reason. We haven’t exactly figured out what that could be yet, but we think it has something to do with playing the MSM.


18 posted on 06/01/2011 8:01:22 PM PDT by metmom (Welfare was never meant to be a career choice.)
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To: catfish1957

Oil is its own incentive. Drilling for profit. Excess government involvement doesn’t help anything.


19 posted on 06/01/2011 8:05:13 PM PDT by reasonisfaith (Pray for Israel.)
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To: DonaldC

Wait a second - did she invite the media or are they on her 24/7?

The media are the whores along with liars.


20 posted on 06/01/2011 8:06:25 PM PDT by presently no screen name
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To: catfish1957

Sarah Palin doesn’t consider the Tax Credits for oil companies “subsidies” and has defended them.


21 posted on 06/01/2011 8:08:41 PM PDT by free me (Sarah Palin 2012 - GAME ON!!)
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To: Kaslin

If there’s actual subsidies involved, and not just free access to “government” land, or deductibility of expenses, then I have no problem canceling them, IF they simultaneously eliminate all the government interference that DIScourages domestic energy development and exploitation. I agree the government shouldn’t be meddling (and especially not picking winners based on corruption or PC-ness), but they do a lot more negative meddling than positive. Let’s make sure we kill THAT simultaneously or beforehand.


22 posted on 06/01/2011 8:16:09 PM PDT by Still Thinking (Freedom is NOT a loophole!)
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To: catfish1957
You're the Jerk and IBD is the Jerk as well for getting it wrong on what she said:

PALIN: "I think that all of our energy subsidies need to be relooked at today and eliminated," Palin told RCP during a quick stop at a coffee shop in this picturesque town tucked into the south-central Pennsylvania countryside. "And we need to make sure that we're investing and allowing our businesses to invest in reliable energy products right now that aren't going to necessitate subsidies because, bottom line, we can't afford it."

“We’ve got to allow the free market to dictate what’s most efficient and economical for our nation’s economy,” Palin said. “No, at this time, our country can’t afford the subsidies. Before, though, we even start arguing about some of these domestic subsidies that need to be eliminated — should be — we need to look at ending subsidies and loans to foreign countries and their energy production that we’re relying on, like Brazil.”

NOTE: Palin criticize Obama two weeks ago on FOX with Brett Baier for trying to eliminate the tax breaks for the Oil Companies - So Palin differentiates PURE Subsides from Oil tax breaks and incentives

Palin: As for the government subsidies that we’re hearing Obama flirting with right now in wanting to decrease those or eliminate those, we’re only talking about four billion dollars. Compare that to the fourteen trillion dollar debt that he, our President, has certainly contributed to and four billion dollars is a drop in the bucket and he shouldn’t assume that the four billion dollars is going to affect Big Oil. No, it’s the independent explorers that we want out there with their entrepreneurial spirit and their manpower and their job creating ability to be out there exploring and then responsibly exploiting and extracting our god-given natural resources.

Palin: Again, you have to remember that President Obama, and I’m going to say this with all due respect to the office of the Presidency, he doesn’t know what he’s doing when it comes to energy. He does not know, as I just pointed out, that the four billion dollars that he thinks he’s gonna stick it to Exxon, BP, Conaco Phillips that no, it’s going to be the independent producers, the explorers that we want out there creating jobs that are going to be hit with an end of subsidy.
23 posted on 06/01/2011 8:24:54 PM PDT by Bigtigermike
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To: metmom

The media follows her every step uninvited and liberal pawns spin it to make her a media whore. It’s amazing the stupidity of some.

She’s touring the country she loves! Many families have taken their children on trips touring the country. When my European relatives visited they had their list of ‘must sees’ for us to take them to visit and they aren’t Americans nor really love America.

I truly believe she doesn’t know if she will run. In fact, I heard Trump say the same thing today speaking about their get together over pizza and meeting her mom/dad and children - and he spoke of her great love for our country.

Bike riding in DC on Memorial Day with the Vets is a once in a life experience for most - and very cool. And, moreso, for someone who loves this country and our military.


24 posted on 06/01/2011 8:26:31 PM PDT by presently no screen name
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To: catfish1957
Wow...just the same policy as Obama. Nice job.

I guess you don't take the time to know Sarah's position. Why don't you go to PalinTV and listen to Sarah's response to Obama's position. You would learn that she does NOT support the removal of tax incentives. She explains clearly that they are not subsidies.

The last thing she would do is burden Americans with higher taxes or more government.

25 posted on 06/01/2011 8:32:13 PM PDT by sand88 (Sarah Palin announces her run: August 12, 2011 11:10am ET)
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To: DonaldC
First thing she has said in a while I can get behind her on. Overall though, I think she is becoming an attention whore. She needs to put her hat in the ring or step out of the limelight.

She was criticized for not doing enough to start up a campaign. So she goes on a testing the waters tour and she gets criticized for doing to much.

26 posted on 06/01/2011 8:39:25 PM PDT by FreeReign
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To: FreeReign

Only by people watching their candidates lose ground because of it.

They’re going to start whining any minute about ‘campaign finance laws’ and Sarah ‘not following the rules’. I’m betting Mitt is the first to break down and do that, since she’s overshadowing his ‘big announcement’ tomorrow.


27 posted on 06/01/2011 8:50:12 PM PDT by perfect_rovian_storm (Fascism is nothing but moderate communism.)
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To: Kaslin

Welcome to the party Sarah. Tim Pawlenty said basically the same thing a week or so ago in Iowa.


28 posted on 06/01/2011 8:50:22 PM PDT by ejdrapes ("Trump is NO conservative." - Jim Robinson)
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To: Kaslin
[IBD art.] ...according to the American Petroleum Institute, the oil industry generates almost $100 million of revenues per day in income taxes, excises and royalties for the federal government. That's on top of an effective 55% corporate tax rate that is higher than in most industries.

A lot of hostility toward the oil (energy) industry is regional and political. Ted Kennedy's postures on the subject over the years were proof of that.

The oil industry is too Southern and too conservative. Ergo, hatred, contempt, and obloquy in all the Northeastern States. And taxes.

29 posted on 06/01/2011 9:05:31 PM PDT by lentulusgracchus (Concealed carry is a pro-life position.)
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To: scooby321
End tax breaks for all forms of energy, she says, and let the free market pick winners and losers. End the ethanol pandering too.

She is offering the U.S. oil industry a "last chance" to compete, at least within U.S. borders.

What people don't realize is that the petroleum industry is beingcoming increasingly statalized worldwide, and has already for 15 years now been dominated by very large state-run entities.

Brazil's Petrobras (Petroleos Brasileiros) has been in the news, but it is only one of many large, statal energy companies. Peru, Malaysia, Indonesia, all the Arab countries, Mexico, Norway, even Canada have "state" oil companies. In addition, several other large energy concerns (BP, Britgas, Elf Aquitaine, ENI/Agip, Gazprom) are "semi-statal" and prone to political interference and direction (or misdirection, as in the case of Venezuela's PDVSA and Italy's ENI, which had a serious political scandal several years ago).

State oil companies and governmental departments now dominate international energy trade, but people in the States, thanks to yellow-press malreportage and underreportage, still think Exxon is the Colossus of Rhodes, and people like Boone Pickens are big stuff.

In the total market, Exxon is not a major player. Not any more. The Seven Sisters and the American-dominated oil industry of 40 years ago have been history for years now, and the U.S. has lost -- lost, squandered, piddled away -- a priceless asset because of political hatred fostered by people like Ted Kennedy.

30 posted on 06/01/2011 9:25:04 PM PDT by lentulusgracchus (Concealed carry is a pro-life position.)
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To: catfish1957
Wow...just the same policy as Obama. Nice job. Kill all the incentive to look for oil. They (Oil Companies) will be glad to take their toys overseas. Sheesh.

She said: "I think all our energy subsidies need to be re-looked at today and eliminated."

Have you read Palin's book: Going Rogue,/i>? "All" subsidies would include the following. Take a look:

In subsidies per unit of energy actually produced, gas-fired electricity generation got 25 cents per megawatt-hour in 2007 subsidies; coal received 44 cents (mostly for clean technology research). By comparison, wind turbines got 23.4 dollars and photovoltaic solar received 24.3 dollars per MWh.

One project alone – the $2-billion Shepherds Flat wind farm in north-central Oregon will transfer $500 million in hard cash subsidies, plus a subsidized loan guarantee of $1.1 billion to White House friend Jeffrey Immelt, General Electric and their partners. These OPM subsidies equal 80% of the $2-billion in tax breaks that Senators Reid and Schumer are so exercised about. The contract was GE’s largest in FY 2009. Ethanol subsidies totaled nearly $5 billion in 2010.

Shepherds Flat will be the world’s largest wind farm: 338 gigantic 2.5 MW turbines, 97 miles of new roads and 167 miles of high voltage transmission lines sprawling across 32,000 to 83,000 acres (up to twice the size of Washington, DC) of the scenic Columbia River Gorge area. At best, the turbines may average one-third of the 2.5 MW stamped on their nameplates. At the whim of the winds, the farm will generate electricity at wild swings between zero and the turbines’ combined rated capacity of 845 MW.

That’s about one-quarter to one-half of what a single modern coal, gas or nuclear power plant generates 90-95% of the time, day after day, all year long … from a tiny fraction of the wind farm’s land area.

If not subsidies, then higher taxes to the consumer. Subsidies are a shell game.

If you believe in private enterprise and free markets, the government should not manipulate business.

Palin is a student of Reaganomics, and sure as hell knows more about energy than you or I do.

31 posted on 06/01/2011 11:01:33 PM PDT by Cobra64 (Common sense isn't common anymore.)
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To: Kaslin
Home run by Gov. Palin!

Meanwhile Romney backs government price manipulation for ethanol, as he did for health care in Mass.

32 posted on 06/01/2011 11:08:55 PM PDT by SupplySider
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To: catfish1957

More to the point would be to eliminate the corporate income tax and regulatory agencies.


33 posted on 06/01/2011 11:11:45 PM PDT by Cobra64 (Common sense isn't common anymore.)
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To: catfish1957
got a better idea. Let's end subsidies for absolutley everything. I mean everything.

That's what I said.

34 posted on 06/01/2011 11:12:53 PM PDT by Cobra64 (Common sense isn't common anymore.)
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To: reasonisfaith; catfish1957
Oil is its own incentive. Drilling for profit. Excess government involvement doesn’t help anything.

I agree. catfish1957 apparently loves government intervention.

Where were the oil subsidies in Beaumont Texas, Titusville, PA, Long Beach, CA at the turn of the century?

All subsidies are a gimmick... including the sacrosanct farm subsidies.

35 posted on 06/01/2011 11:20:56 PM PDT by Cobra64 (Common sense isn't common anymore.)
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To: Cobra64
Excellent post.

I think Gov. Palin shares something with the late great Reagan. She has a deep instinct for economic freedom and what it has meant to America.

Unlike Romney and, to a great extent, Bush I and II, she wants to reform, not "govern" aka manipulate.

36 posted on 06/01/2011 11:21:30 PM PDT by SupplySider
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To: Cobra64
I agree. catfish1957 apparently loves government intervention

That is not what I said, and you know it. I have no problem ending energy subsidies, as long as the government butts it's head out of the rest of our business, and also ends subsidies for everything else.

37 posted on 06/02/2011 3:38:17 AM PDT by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
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To: lentulusgracchus
In the total market, Exxon is not a major player. Not any more. The Seven Sisters and the American-dominated oil industry of 40 years ago have been history for years now, and the U.S. has lost -- lost, squandered, piddled away -- a priceless asset because of political hatred fostered by people like Ted Kennedy.

Thank you and finally some discuss with someone who understands our industry, and not someone feeding off the latest Palin sound bite.

State owned oil companies constitute a self subusidized competitor that have advantages in a competitive market. Add the internal enemy (the government) and we (oil as in Standard Oil descendants and smaller players) are facing a stacked deck. Very few remember back in the 80's when oil reached the $10-15/bbl, and it's associated impact. Considering the economic conditons right now, one more bust like that would eliminate probably 50-75% of the companies in this business right now.

Ms. Palin talks of driving oil prices down to the floor. I guess she doesn't think that is government intervention. In any case, she may not like the consequences of what that brings. Foreign interests drilling for our oil on our soil and waters is not a favorable scenario.

38 posted on 06/02/2011 4:11:55 AM PDT by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
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To: catfish1957
I got a better idea. Let's end subsidies for absolutley everything. I mean everything.

I agree. The government cannot reconsile selective subsidies with "equal protection under the law" anyway. They should NOT be picking winners and losers. It stinks of graft and corruption.

39 posted on 06/02/2011 4:54:28 AM PDT by meyer (We will not sit down and shut up.)
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Hydrogen Advocacy Group Anti-Ethanol Agitprop One-half gallon of oil in the form of pesticides per bushel of corn would cost $2 to $3 per bushel. If this were true -- and it clearly isn't -- it should be enough to illustrate to literally anyone that the price of petroleum is quite literally the ONLY thing driving corn prices. And this idiotic piece of agitprop -- from a hydrogen "energy" advocacy site -- also shows the guy in the encounter suit spraying chemical fertilizer, a sight that I've never been privileged to see, what with me *growing up on a farm*.

40 posted on 06/04/2011 5:01:04 PM PDT by SunkenCiv (Thanks Cincinna for this link -- http://www.friendsofitamar.org)
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