Taxpayers for Common Sense joined several groups today to call on Congress to oppose the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act (S. 1863, H.R.1380), or any other effort to create or expand special tax treatment for the production, conversion or sale of vehicles that run on natural gas.
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January 30, 3012
Dear Members of Congress:
We are writing to renew our objections to the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act (S. 1863, H.R.1380), or any other effort to create or expand special tax treatment for the production, conversion or sale of vehicles that run on natural gas. Several members of this coalition expressed similar concern in a letter dated May 24, 2011. Given President Obama’s recent public pronouncements that he wants to expand his portfolio of politically advantaged vehicles from electric cars to include natural gas vehicles, we feel the need to remind Congress about the perils of government attempting to conduct industrial policy by picking winners and losers in the country’s automobile fleet.
The NAT GAS Act would provide preferential treatment for nearly every aspect of the natural gas-fueled vehicle industry, from production to purchase and the infrastructure needed to fuel such vehicles. Tax incentives like these allow government to decide which energy sources thrive or fail—and thereby distort the market. America’s experience with a number of similar energy policy preferences dating back to the 1970s has shown that businesses benefiting from these incentives become reliant on government in order to stay in business. As a result, an entire industry of lobbyists is spawned to protect a benefit without which many businesses could not succeed in the free market.
We believe that evenly applying low taxation across the board allows market participants to make choices that are not manipulated by Washington policymakers. By targeting tax preferences toward one type of transportation fuel—natural gas—the NAT GAS Act does the exact opposite. America’s tax code is already overburdened with too many carveouts for special interests that raise compliance costs, distort decision making and advantage the politically well connected. The last thing Congress should be doing is making the tax code more complex.
The millions of Americas represented by the undersigned groups urge you not to support any effort to perpetuate the Washington-insider business model where the well connected use the tax code to gain a market advantage over their competitors.
We urge you to reject special tax treatment for natural gas vehicles.
Sincerely,
Thomas J. Pyle
Donald Ferguson
Executive Director American Tradition Partnership
Tim Phillips
President Americans for Prosperity
Grover Norquist
President Americans for Tax Reform
Chris Chocola
President The Club for Growth
Tom Schatz
President Council for Citizens Against Government Waste
Matthew Brouillette
President & CEO Commonwealth Foundation
Myron Ebell
President Freedom Action
Michael A. Needham
Chief Executive Officer Heritage Action for America
Heather Higgins
President Independent Women’s Voice
Seton Motley
President Less Government
Colin A. Hanna
President Let Freedom Ring
Amy Ridenour
President National Center for Public Policy Research
Duane Parde
President National Taxpayers Union
Jim Martin
Chairman 60 Plus Association
Ryan Alexander
President Taxpayers for Common Sense  .JPG) .JPG)
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