Tags: laffer | obama | energy

Laffer: Obama Energy Policy Disastrous

By    |   Friday, 02 Jan 2009 11:09 AM

President-elect Barack Obama's goal of energy independence could spell economic disaster for America, says Laffer Associates head Arthur Laffer.

“Any serious attempt to reduce carbon emissions must ultimately rely on a very large tax on the use of fossil fuels … (that would) drive the economy deeper into the ground, with or without alternative renewable energy jobs,” Laffer writes in The Wall Street Journal.

Laffer agrees with former Vice President Al Gore that any carbon tax increase must be offset dollar-for-dollar with an income or payroll tax reduction.

"The economy would benefit because the progressive income tax does far more damage than a carbon tax would, and we'd use less oil, yet this perspective appears to be totally outside the Obama team's ken."

Without such a tax reduction, energy independence for the U.S. would make oil hugely more expensive here and much cheaper for the rest of the world, causing American businesses and jobs to move offshore, Laffer points out.

BP America head Robert Malone says Obama's nominee for energy secretary, Nobel physics laureate Steven Chu, could put an emphasis on technology in energy policy.

Obama is “signaling the importance of science to what we do and I view that as a positive," Malone told reporters at a BP press briefing.

However, Malone also warned the new administration must clarify its policies on renewable energy and opening new areas for oil and gas exploration.

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President-elect Barack Obama's goal of energy independence could spell economic disaster for America, says Laffer Associates head Arthur Laffer.“Any serious attempt to reduce carbon emissions must ultimately rely on a very large tax on the use of fossil fuels … (that would)...
laffer,obama,energy
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2009-09-02
Friday, 02 Jan 2009 11:09 AM
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