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Tax Breaks & Subsidies and California
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According to an article printed in the Deseret Morning News on Dec. 21, the wind farm planned for the Milford area will receive tax subsidies from the state of Utah to the tune of $4.3 million. Since all of the electric power from this subsidized project will be sent to California, it is akin to exporting Utah money, by wire, to the Golden State.
Also filed under [
Utah]
The temptation for Silicon Valley voters would be to ignore the intricacies of the proposition and simply decide a ``yes'' vote would send a message to oil companies and to the world that California intends to lead the way in developing alternative energy sources.
That would be a mistake. We strongly support the concept of Silicon Valley entrepreneurs helping California research and develop technological breakthroughs that will eliminate our foolhardy reliance on Middle East oil. But two fundamental flaws in Proposition 87 force us to recommend a ``no'' vote.
Also filed under [
General|
Energy Policy]
WHO wouldn't like to hit Big Oil where it hurts - in the wallet? Proposition87, however, could end up costing the state and taxpayers for years to come.
While promising to bring in close to a half-billion dollars annually from taxes on oil drilling in California, none of those dollars will go in the treasury.
Not one penny will be used to pay down the state's debt, ensure education funding or provide more health insurance to working families.
Likely, California's property taxes and corporate income taxes could be reduced if oil producers decide to pump less of the black gold from California fields to avoid the extraction tax.
Also, Californians aren't likely to see any immediate benefits from the measure for many years. That's because proceeds from the tax would fuel a $4 billion program for alternative energy research and provide start-up capital for technology companies.
Also filed under [
General|
Energy Policy]