By Ioana Arghir
WASHINGTON (MNI) – More than two dozen groups Thursday joined
in a letter to Congress urging the dismantlement of government subsidies
given to big energy companies.
The statement, unveiled at a news conference held at the
conservative Heritage Foundation think tank, is aimed at subsidies the
groups say help neither market efficiency nor taxpayers. Prominent among
the subsidied targeted are those for ethanol products, but many others
are included as well.
Andrew Moylan, vice president of government affairs at the National
Taxpayers Union, said dismantling existing subsidies will “provide real
protection for taxpayers, and put ourselves on a more sustainable path
going forward.”
“Twenty-nine groups have signed the letter,” Moylan said, adding
that dismantling subsidies already in place “is probably the hardest
part.”
The reason, he said, is “because there are huge entrenched
interests that have spent decades benefitting from these things.”
Moylan said the letter is an effective statement that
identifies energy subsidies as a major problem for the many new
conservative members of Congress.
In 2009, $18.6 billion went to direct financial subsidies, however
“the total number was $25 billion,” when tax expenditures were added,
said Steve Ellis, vice president of Taxpayers for Common Sense.
Sen. Tom Coburn, a Republican representing Oklahoma, has joined
with a Democrat, Maryland’s Sen. Ben Cardin, in introducing a bill to
repeal a major subsidy for ethanol that costs $6 billion.
** Market News International Washington Bureau: 202-371-2121 **
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