Report Urges the Termination of Wasteful Government Subsidies,
In a report titled Green Scissors 2011, the group makes recommendations on how the federal government could save billions of taxpayer dollars, but also includes some suggestions such as troubling tax hikes that AFP-Texas cannot support.
“The Green Scissors 2011 report comes at a critical time when America is faced with over $14 trillion in debt. The report highlights critical and sensible ways to help solve our nation’s debt crisis, including ending ethanol subsidies, reforming agriculture subsidies, and ending the renewable fuel standard,” said AFP-Texas State Director Peggy Venable. “However, not all recommendations in Green Scissors 2011 are sound economic policy.”
Although AFP-Texas previously issued a release praising certain aspects of the Green Scissors 2011 report, that statement should not be considered a blanket endorsement of the plan. While the report goes a long way in stressing the importance of fiscal responsibility in Washington and identifying solutions such as wasteful government subsidies, the report also recommends policy changes that would harm our fragile economy. These concerns include increasing taxes on oil and gas companies which could spike gas prices, such as new taxes on intangible drilling costs, ending dual capacity deductions for foreign income, and further limiting traditional energy providers’ access to the domestic manufacturing deduction.
“AFP-Texas applauds the coalition for their work towards a balanced budget and reduced national deficit. Excessive government spending must be cut immediately in order to stabilize the economy and get Texas and America back on the path to prosperity, but some of the ideas proposed – such as new taxes – work contrary to that goal,” Venable added.
AFP issued its own recommendations to the so-called Super Committee which lays out over $5 trillion in spending cuts over a ten-year period. AFP’s recommendations can be found here.