Washington, D.C., February 10, 2003—The Competitive Enterprise Institute and 13 other public policy groups are urging President Bush to drop a scheme to award credits for reductions in emissions of greenhouse gases in favor of supply-side tax reforms that will both stimulate economic growth and increase energy efficiency. The President is expected to announce a greenhouse gas plan this Wednesday. <?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />
In a recent open letter, representatives from over a dozen free market, consumer, and taxpayer organizations explain that “credit for early reductions” will create the institutional framework and political incentives for the kind of energy rationing called for by the Kyoto Protocol.
“Emissions credits would attain full market value only under a coercive regulatory regime, which is why President Bush cannot move ahead with this plan without also mobilizing support for anti-growth policies like the Kyoto Protocol, which he professes to oppose,” said CEI Senior Fellow Marlo Lewis, Jr. “If the President is determined to lower U.S. carbon intensity, he should expand the expensing provisions of his growth and jobs policy. Removing tax barriers to investment in new plant and equipment will reduce emissions and energy intensity while also boosting productivity,” Lewis explained.
The letter by the Competitive Enterprise Institute and co-signed by 13 other public policy organizations is the second letter the groups have sent to the White House on this issue.
CEI is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government. For more information about CEI, please visit our website at www.cei.org.