The Truth About Subsidies, Investments and De-Funding

In President Obama’s State of the Union Address last month, he stated, “I’m asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies.”  The President went further, “So instead of subsidizing yesterday’s energy, let’s invest in tomorrow’s.”

Our President should know there is a major, basic difference between a subsidy and a tax break.  One involves the government actively giving money to an individual or entity to supplement income for a good or service.  The other simply involves government taking less of what an individual or entity has earned.

Oil and gas companies are granted various tax breaks, usually to encourage domestic exploration rather than drilling overseas, which make up the “billions” President Obama referenced.  The “investments” of tomorrow’s energy that he also referenced, on the other hand, could absolutely be classified as real subsidies in most cases, as federal government actively hands out public tax dollars to subsidize salaries and services of most alternative energy industries.

Now in recent budget debates, supporters of Planned Parenthood are upset at Republican attempts to “de-fund” their organization.  If Democrats were to stop appropriating money to pro-life non-profits, we would likely hear similar from social conservative groups.  Fact is, this “de-funding” is simply removing government subsidies.

Planned Parenthood, like Louisiana Family Forum, Acadiana Arts Council, etc. is a Non-Governmental Organization.

With current deficits, the U.S. Government and State of Louisiana should end all appropriations to any NGO that is not contracted with said government to provide a good or service.

These groups already receive tax-exempt status.  The taxpayers should not also be subsidizing their salaries and services.

Nick Bouterie serves as an Alderman for the Town of Iota.

Interested in more national news? We've got you covered! See More National News
Previous Article
Next Article
Join the Conversation - Download the Speakeasy App.

Trending on The Hayride