Tax Credits

Tax credits are special deductions that allow companies and individuals to lower their annual tax liabilities.

Such deductions are available to those who take a certain action or produce some particular product favored by Washington politicians or bureaucrats. Often, these credits give favored companies and industries unfair advantages over their competitors.

The Wind Production Tax Credit is a prime example. Created in 1992 to encourage investment in the wind energy sector, it costs over $2 billion every year. Not only does this increase our deficit, but it also discourages efficiency in the wind industry by rewarding energy production regardless of demand.

In many cases, companies simply build wind energy that is less efficient than other sources simply because of the tax write off. Some investors even point out that wind energy doesn’t make economic sense without credits.

Nor is this the only example. Tax credits for activities such as energy production—including oil and gas—funnel tax dollars into well-connected, successful businesses that don’t need to be subsidized by hard-working taxpayers.

If a product or service is truly valuable, it will be able to succeed without the taxpayers’ help.


Jul 21, 2017

VIDEO | Rep. Blackburn: Tax Reform’s Biggest Stumbling Block BAT is Off the Table

Is the controversial and widely rejected trillion-dollar Border Adjustment Tax (BAT) on imports finally being laid to rest? Rep. Marsha Blackburn (R-TN) told Fox Business Network viewers that she believes…

Read More

Apr 28, 2017

Border Adjustment Tax “Probably Dead” — White House Confirms Harmful Tax Not Part of Tax Reform Efforts

The U.S. Senate’s second ranking Republican says the proposed Border Adjustment TX (B.A.T.) – or 20-percent tax on imported goods proposed by Congress in order to pay for…

Read More

Nov 01, 2016

Tax Extenders: Corporate Welfare for Energy Companies

EXPIRING CORPORATE WELFARE: LET IT DIE Dozens of special-interest tax giveaways are set to expire on December 31. But these provisions, which some in Congress want to extend, are nothing but…

Read More

Oct 27, 2016

Billions of Dollars in Tax Giveaways Are Expiring – Let Them

Congress has the opportunity to give taxpayers a holiday season gift this year-billions of dollars in savings—and all without doing a thing. At the end of the year, dozens of…

Read More