AEA Responds to GOP Tax Plan

WASHINGTON – Thomas J. Pyle, President of the American Energy Alliance, has issued the following statement on today’s release of the Tax Cuts and Jobs Act:

“This pro-growth tax reform plan is a breath of fresh air for American businesses and the American people. The immediate lowering of the corporate tax rate to 20 percent will free up capital to boost investments, jobs, and incomes and the termination of distortionary practices like the $7,500 electric vehicle tax credit will help restore market signals and save taxpayers money. The 2016 elections gave the president and this Congress a mandate to chart a better path for our economy and this plan reflects that.”

“While we’re pleased with many provisions and the overall blueprint, we would prefer to see—and will continue to argue for—a more thorough elimination of federal energy subsidies. A termination of the Investment Tax Credit and the Production Tax Credit is of the highest order of importance. With that said, this plan takes us in the right direction by maintaining the scheduled expiration of the Production Tax Credit for wind energy and phasing out the temporary credits for wind and solar established by the 2015 PATH Act.

“The subsidies that have been dished out by the federal government to the wind industry in particular are staggering. Our 2015 study found that the cumulative magnitude of federal subsidy allocations from the PTC, the ITC, and Section 1603 grants to the wind industry from 2005 to 2014 was at least $18.6 billion. The wind industry’s continued dependence on the federal government is an injustice to the taxpayers forced to foot the bill. The phase-out of these subsidies cannot come a moment too soon.

“The bottom line, despite its flaws, is that this plan is a positive overhaul of a broken tax system. The sizable tax reduction for corporations will bring new jobs and stronger earnings for American families and help us move more into line with America’s historically strong rates of economic growth.”