$9 Billion Loophole for Synthetic Fuel

Rondrin writes "CNN has an article detailing a $9 billion loophole in the tax code to spur synthetic fuel development. Unfortunately, spraying coal with pine tar qualifies. From the article: 'The wording is so bland and buried so deep within a 324-page budget document that almost no one would notice that a multibillion-dollar scam is going on. Not the members of Congress voting for it and certainly not the taxpayers who will get fleeced by it. And that is exactly the idea.'"

Comments

More socialist bs

[geekee]

Although people think of programs like welfare when they hear the term socialism, govt. incentives to help business are the same thing. You can argue that giving incentives to companies to produce technology in areas the US needs to be headed in is a good thing, but don't be surprised when the money is ill spent. Unlike in a corporation, where people are fired for wasting money, in govt. you win elections for getting tax dollars into your district, even if they are being spent on something completely non-productive.

This ought to be good...

[symbolic]

Republicans and Democrats alike pledging to crack down on influence peddling,

Riiiight. Pardon my underwhelming response, but I seem to remember a similar effort to "crack down" on campaign finance abuse. Oh wait...that has yet to happen. And this is something else that will also probably never happen. Any elected person worth their weight in salt (literally) knows that exercising care not to bite the hand that fills the campaign trough is far more pressing than more mundane issues - like maintaining a sense of integrity. I'm filing this in the "I'll believe it when I see it" category.

Re:Government screwups

[danpsmith]

This is another example of why you cannot rely on the government to "solve" these fuel problems. They end up making bad situations worse. Take the oil crisis of the mid 70's. The government tries to solve the problem by implementing price controls instead of letting market forces take hold and lowering demand. They end up running half the stations out of business for a time and creating huge lines at the ones that do manage to stay open. I'm not a Bush fan, but he should be praised for leaving things alone after Katrina. Gas prices worked themselves out because people became concious of their consumption. Demand fell, prices fell. The Market worked.

I marvel at this neo-capitalistic, liberatarian viewpoint on everything. I hear it a lot here. The market will work itself out. The market works towards a monopoly that creates barriers of entry. If government can't police the market at least a little bit, then we don't even live in a democracy anymore. Because when you vote with your dollar, your vote only counts as much as the contents of your wallet. Maybe this is an issue with the way in which government attempts to help things instead of an issue of them helping at all. Government funds a lot of research that would otherwise not happen because it is unprofitable. Just because it's bureacratic and awful doesn't mean the free market is the answer, it means we need to make it a better government.