Conservative, MY FOOT! Karl Rove Is Calling For Wind Energy Tax Credits???

Posted on June 15, 2012


Georgia (The Gaslamp Post) – Karl Rove showing up at this year’s Windpower 2012 conference is an attention grabber enough, but when he decided to throw his support of tax credits for the wind power industry; people sat up and took notice.  Rove, a regular on The Factor, a prime time news show hosted by Bill O’Reilly, has long voiced his negative opinion of the naked cronyism behind President Obama’s green energy policies, and their abuse and waste at the taxpayer’s expense.

This latest development is leaving many conservatives scratching their heads.  

Rove, former advisor to President George W. Bush, called for wind power to help aid the growing energy requirements.  At present, as wind energy providers are already turning to the government to recover losses from unreliable natural wind forces, it’s not known how exactly this source of electricity is going to do that job.

“We’ve got a growing economy that’s increasing energy consumption and wind energy should be part of the solution,” Rove said today on a panel at a wind conference in Atlanta. Extending the so-called production tax credit “should be a priority.”

A bill to extend through 2016 the 2.2-cent-a-kilowatt-hour credit for electricity produced by wind turbines, biomass, geothermal and landfill-gas plants has stalled in congress along with about 100 other expiring tax-related incentives.

2.2 cents per kilowatt?  Depending on where you live, a kilowatt-hour can range from $.06 to $.10 per unit.  Worst case scenario, this plan is calling for over 20% of the normal electric bill charge per kilowatt-hour back from the tax-payer!

As pleasant as that sounds, any real conservative would understand that if the wind power industry was viable, they wouldn’t need tax breaks in order to sustain themselves.  It makes one wonder whether this is a change of heart, or more big government, money wasting that we can expect out of our leaders.  Anyone who would call for this sort of thing, knowing that they advised an American president, should send shivers down your spine.

Mr. Rove didn’t waste any time turning his argument in the direction from the need for the additional electricity that wind power offers, to that of the employees of the wind industry.

Bloomberg Business Week wrote:

There are about 75,000 U.S. wind-industry workers, according to the American Wind Energy Association. Letting the credit lapse will lead to the elimination of 10,000 wind- industry jobs this year and another 27,000 in 2013, the Washington-based trade group estimates. 

Rove added that he believes that since Republicans generally approve tax cuts for businesses, anyone running for office would see it as, “this means jobs to my district and a resource we’ve got plenty of,” he said.

Providing tax credits to help employ workers in an unsustainable industry cannot work in the long-term.  Any industry that requires constant bailouts is a drain on an economy, and not a feasible business.  The argument could be made that these tax credits would only be temporary until the technology improves, but that would be naivety.  If they are paid to do as they’re doing, there’s no incentive to improve or develop the technology.

The first law of economics is that an individual will only pay what they have to, in order to obtain a particular good or service.  The converse of this is that an individual is only going to work as hard as they have to, in order to get paid what they want.

It is foolish to throw money at an industry simply because they have employees, and doing otherwise would put people out of work.  Had that industry not had the helping hand of the tax payer, it would never have gotten as big as it did, as fast as it did.  It is not profitable and therefore unsustainable.

Businesses do not exist for the purpose of providing jobs; they exist in order to generate revenue.  From that revenue, expansion is possible.  From that expansion, employment is possible.  My question is: who owns the wind farms and whose campaign did they contribute to?

The tax payers should wake up and realize what this is all about.  We had plenty of power plants but our current administration ordered them shut down.  Summer is here and some parts of the country are going to experience rolling blackouts, this is by design. 

This is big government hacks paying back the favors for getting them their jobs.  Mr. Rove, I’m going to insist that you turn in your “conservative card”.

(h/t:  Businessweek, Lean Forward)