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Senate Special Interest Energy Bill Does Not Meet U.S. Energy Needs

For Immediate Release. June 30, 2005 On June 28, 2005, the Senate approved as amended the Energy Policy Act of 2005 (H.R. 6), a broad energy legislation that includes $14 billion in tax incentives for oil and gas production as well as development of wind, solar, and other energy sources by a bipartisan vote of 85-12.  Also, consumers that purchase hybrid cars and energy efficient appliances will receive tax credits.  

“Although energy producers are experiencing record profits, the burden to provide corporate welfare falls on the backs of the hard working American taxpayers to fund tax breaks that will not reduce the cost of gasoline for the American consumer and will not eliminate or reduce this nation's dependence on foreign oil,” said Dr. Joel P. Rutkowski, president of the American Voice Institute of Public Policy. 

As consumers have to pay more for gasoline and have less to spend on other goods, domestic spending will be effected by high-energy prices.  Consumer spending constitutes about two-thirds of the economy, and the potential for a consumer-led slowdown of economic growth is highly probable as the cost of oil does not appear to be declining in the near future.  Already, the strong economic recovery is being affected by record high oil prices that reduce consumer disposable income because high-energy prices act as a tax.  

“The free market should determine the type of fuel, energy source and products that will reduce America's energy needs and not targeted tax breaks and mandates,” said Dr. Joel P. Rutkowski.  He added, “ The measure requires that by 2012, 8 billion gallons annually of ethanol is to be used which will increase the cost of gasoline to the consumer, will not reduce the dependence on foreign oil and is nothing more than corporate welfare for Midwestern farmers.  And new technology development should not be subsidized by the government which almost always wastes taxpayer money and fails to make this nation energy independent from foreign sources but should instead be done in the market place according to market principles.”

For Interviews Contact:

Joel P. Rutkowski, P.h.D.
President, The American Voice Institute Of Public Policy


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