Monday, March 31, 2008

What Price Energy?

At what price energy? For energy consumers in Connecticut the answer is always unknown. Depending upon the time of day you can choose one of the many answers; increased demand from developing countries, supply disruptions, change of season, high temperatures, low temperatures, new formulas, and the list goes on and on.
In my economic opinion we have an energy market which has become a collusive oligopoly, where prices are controlled by this oligopoly.
Our state enjoys the excessively high fuel prices as they reap greater and higher tax revenue from the secret gross earnings tax on fuel. This tax is obscene greed by our state government and should be eliminated in order to provide relief for energy consumers. But why cut that tax (or any tax)? That would mean that the state like us would have to cut spending and we know we can’t have that when an overspending bureaucratic government is Hartford's desire.
Here are some solutions that should be enacted immediately. Eliminate the secret gross earnings tax on fuel. Ban heating oil heat and water systems for all new housing. Give one year full property tax abatement for all housing that converts to hydroelectric/solar/geothermal and wind energy. Make all of these same systems exempt from state sales tax. All hybrid vehicles should be fully state sales tax and property tax exempt. Redevelop nuclear power plants to generate electricity. Develop greater efficiencies to our rail systems to move products to our state. Develop a monorail system which would be user friendly moving us from place to place. Connecticut could have for 35 years taken a lead in these areas. Instead we have 35 years of frivolous and inept energy policies from both federal and state government.
For 35 years I have been writing about high energy prices and our lack of energy policy. I am sure I will be writing for 35 years more about it also.

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