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THANKS GUYS, BUT YOU'VE DONE ENOUGH ALREADY

June 12, 2007

Tax Analysts notes ($link) that Congress is once again looking to the tax law to address the nation's energy needs. For example:

Senate taxwriter Ron Wyden, D-Ore., told reporters June 11 that he would push for conditions to tax breaks for the oil industry. Wyden said he will offer at "every step of the way" a provision that would require the oil industry to expand refinery capacity by 15 percent during the next five years before an oil company can qualify for the section 199 domestic production deduction.

I hate to disappoint Senator Wyden, but I really don't think tweaking a three-year-old tax deduction will remedy the problems that have prevented any new oil refineries from being built in the U.S. since 1976. Sometimes the problem just isn't the tax law.

Here are a few facts for the senators to ponder before they proceed:

June 13, 2005 U.S. regular conventional retail gasoline price per gallon: $2.10

July 29, 2005: Congress passes the Energy Tax Act of 2005.

June 11, 2007 U.S. regular conventional retail gasoline price per gallon: $3:08

Thanks, guys! You don't have to pass another energy tax bill, you've done enough. Really, you have!

UPDATE: More at The Knowledge Problem (UPDATED UPDATE: link fixed)

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