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The 2008 House Energy Tax Bill: Repeating Past Mistakes

Senate Energy Bill Tax Title Hikes Taxes and Promises Higher Pricesfor Consumers

Taxing successful energy sources and subsidizing unsuccessful ones-that is the essence of Washington's energy policy during the 1970s and early 1980s, and it would be repeated by the Senate's version of the House's energy bill (H.R. 6). The bill would raise taxes by an estimated $28 billion over 10 years, mostly from the oil and natural gas sector, and spend much of this money on tax breaks for alternative energy sources like ethanol and wind power. If history is any guide, this approach is likely to backfire, raising prices and reducing energy security.

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