For more background on this impending debacle to the American taxpayer please see my previous article from last September. NAT GAS = New Alternative Transportation to Give Americans Solutions Act.
Some of the most respected names in conservative circles have sent a joint letter to Congress laying out the facts about proposed legislation promoting natural gas-fueled vehicles. Among the signers are conservative powerhouses like Americans For Prosperity, Americans for Tax Reform, Club for Growth, American Energy Alliance, and Citizens Against Government Waste.
H.R. 1380, [summarized] introduced by Representative John Sullivan (R-OK), and S. 1863, introduced by Senator Robert Menendez (D-NJ), would create new and expand existing special tax treatments for the production, conversion, and sale of of natural gas-powered vehicles — all at a time when Congress should be simplifying the tax code instead of adding more special handouts for favored interests.
What the above description doesn’t say is that those “special tax treatments” are to the tune of a $64,000 tax credit for each individual natural gas-fueled truck that a business purchases and a $100,000 credit for each fueling station.
From the letter:
The NAT GAS Act would provide preferential treatment for nearly every aspect of the natural gas-fueled vehicle industry, from production to purchase and the infrastructure needed to fuel such vehicles. Tax incentives like these allow government to decide which energy sources thrive or fail—and thereby distort the market. America’s experience with a number of similar energy policy preferences dating back to the 1970s has shown that businesses benefitting from these incentives become reliant on government in order to stay in business. As a result, an entire industry of lobbyists is spawned to protect a benefit without which many businesses could not succeed in the free market.
The Heritage Foundation, which has led the charge against NAT GAS, exposes exactly who Obama’s crony capitalist venture will help…George Soros:
One company which stands to benefit handsomely from the President’s proposal is Westport Innovations. The company converts diesel engines to be fueled by natural gas. Wall Street analysts predicted a boom for the company if the NAT GAS Act were passed. CNBC analyst Jim Cramer said he “expects shares to absolutely explode” in the event the legislation were to pass.
If Westport reaps the predicted windfall, one of the chief beneficiaries will be George Soros, a major Obama donor and supporter. Soros’s hedge fund holds 3,160,063 company shares (as of its last SEC filing).
Another member of the billionaire’s club that would reap huge benefits from the legislation is T. Boone Pickens:
The bill…would provide huge new subsidies to buyers and users of heavy duty trucks that use natural gas. Pickens owns Clean Energy Fuels, which builds and runs natural gas service stations. He also has major investments in a number of companies in the natural gas industry. The value of these investments would probably increase by several billion dollars if the bill were enacted.
Read the coalition letter in full here on Scribd.
As AFP points out, the last thing we need to be doing is adding more layers of complexity to our tax code, particularly ones that disproportionately benefit billionaires like Soros.
Crossposted at Conservative Outlooks