Naked Money Grab: Incentive Scam Is A Waste
Energy plan supporters who claimed the scheme at the heart of this weeks special session wasn't a government giveaway now need only look at the appropriation on page 106 of the bill in the amount of $5,319,500 from the General Fund.
That is for the first year interest payment on the $100 million bonding appropriated on page 105 of the bill for the purpose of giving companies cash in advance of the start of their projects.
What is that if not corporate welfare? In the mountains of eastern Kentucky, they call welfare "crazy checks." Maybe we need to start referring to HB 1 as the Coal Company Crazy Check Act of 2007.
It wouldn't be quite so bad if we weren't borrowing the money before we give it away. But there is no justification for a fiscal conservative vote in favor of this mess. And since the powers-that-be have put out the word that only one technical correction to the bill will be allowed -- but no amendments -- the responsible thing to do is to vote against the bill.
posted by Kentucky Progress @ 8/21/2007 01:13:00 PM
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Our Legislators are in Session right now attempting to pass House Bill 1. Please call the toll free legislative message line and ask that all Northern KY Legislators get your message to oppose House Bill 1. It is on the fast track and could pass by Friday. Call 1-800--372- 7181 VOTE NO ON HOUSE BILL 1
Credit goes to Jim Waters for this excellent commentary.
– Jim Waters is the director of policy and communications for the Bluegrass Institute, Kentucky’s free-market think tank.
You can reach him at jwaters@bipps.org. You can read previously published columns at www.bipps.org.
"...Frankfort adults who still believe in fairy tales should consider this: Several attempts to create the kind of coal-liquification technology that would provide viable substitutes to oil have become fuel for past taxpayer nightmares instead.
In the 1940s, Congress appropriated millions of dollars to enact the “Synthetic Liquid Fuels Act.” In 1948, the New York Times declared it would result in energy – produced from coal, air, and water – in quantities sufficient enough to “free us from dependence on foreign sources of oil.”
By 1952, these federal coal-to-liquid demonstration plants shut down.
In 1960, Congress (code: taxpayers) paid for construction of six synthetic fuels demonstration plants, including one in Cresap, W. Va. Proponents promised gasoline at 11 cents per gallon.
Didn’t happen. In fact, the Cresap economic disaster called “Project Gasoline,” went in the tank in 1970.
The most well-known energy-liquification effort occurred in the 1970s when an oil embargo threatened America’s economy. Many of us maintain unforgettable images of long lines at gasoline pumps.
In one of many demonstrations of ineptness, President Jimmy Carter signed the 1980 Energy Security Act, authorizing money for the Synthetic Fuels Corporation (SFC) and charging it to produce a half-million barrels of oil per day by 1987. President Gerald Ford previously promised 1 million barrels of oil a day from coal by 1985.
Instead, the SFC shut down in 1985. Not a single coal-to-oil plant produced anything – except the loss of hundreds of millions of taxpayer dollars.
If turning coal into oil (and then into gasoline) represented such a great and profitable possibility, it would succeed in Kentucky if anywhere. The state holds a plentiful supply of coal. Mining costs remain fairly cheap.
The operative word is “if.” But it’s not going to work – at least not right now.
The politicians can spin a gusher of numbers on this. But a much-better indicator of the likelihood of success is whether private investors are interested enough to ante up their cash.
So far, they haven’t.
Otherwise, we wouldn’t have lobbyists prodding Frankfort to do this. The day the private sector believes such an effort viable and does not need to seek government subsidies to try and make it work, I’ll be the first one to say, “Things have changed, folks.”
Of course, once private investors get on board, we can only hope for what government should do: get the you-know-what out of the way.
Kentucky policymakers would do well to consider what Jerry Taylor, an expert on energy and environmental policy at the Cato Institute, told me:
“The economic merit of any given technology is inversely related to the amount of advocacy you hear for that technology in Washington or the state capitols. Only when private actors reject the technology do we start hearing about it in Washington or the state capitols.”
But the likelihood that most politicians will heed such wise counsel is about as good as subsidized coal-liquification ventures succeeding and huge amounts of taxpayer dollars remaining unspoiled."
The RINO Senator Damon Thayer is appearing on a No Ky Insight Cable program of Pat Crowley's this week.
Damon is seen squirming and pissing in his pants over the dishing out of the public's treasury (your Money) for this corporate welfare scheme of the baffoonish Ernie Fletcher.
The tax and spend liberal, Damon Thayer, scores a Club for Growth number down scale and very close to socialists Julian Carroll, Ernesto Scorsone and, Dan Mongiardo.
Damon Thayer at this time is begging your support for his special interest larded campaign fund, while he cuts your throat with this budget busting folly.
I knew the Republicans supported Corporate welfare. They believe in the free market for small business and corporate welfare for big business. I am rather disappointed in the Democratic Party. I did not think that they supported corporate welfare also. Imagine this huge 300 million dollar government subsidy to one company? No wonder Future Fuels of Houston Tx which just incorporated in June of 2007 whats their grubby little hands on our tax dollars too. When we have politicians in both parties this irresponsible with our tax dollars i give up. I do not want to hear anyone say they are conservative except the ones who voted no against this incredible tax giveaway. I expected it from the Republicans but I am extremely disappointed in the Democrats. I expected more from them! Live and learn.
Call the toll free number to say thanks to the bi-partisan group of 10 legislators who voted NO on this bill on the House Floor. The number is 800-372-7181. The list is below:
Tom Burch
Ruth Ann Palumbo
Jim Wayne
Mary Lou Marzian
Kathy Stein
Reggie Meeks
Carolyn Belcher
Tom Riner
Jimmy Higdon
David Floyd
For more information on this insane direction our leaders are taking us, visit
http://www.no2peabodycoal.org
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