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Should the Government Select the Form of Alternative Energy or Its Providers?

My answer to the above question is a resounding "NO!".   However through tax credits, direct subsidies, etc., that is precisely what is happening even though the granters of such benefits have little if any technical, cost accounting, etc. expertise with which to do it.

I would propose the following:

Eliminate corporate income tax, our most inefficient form of taxation, and concurrently replace it with a $50 per barrel tax on all petroleum products produced, imported, and/or consumed in the USA. This action will be approximately both tax and inflation neutral, but would create a very favorable environment for the development of all alternative forms of energy.

With that favorable environment, end ALL government subsidies for alternative energy, and the more efficient methods, whether nuclear, wind, solar, hydrogen, or perhaps something unknown today, will flourish based on market selection rather than bureaucratic/political selection in ignorance and or graft.

We would also receive the following benefits:
1) Reduction of capital drain to foreign (often hostile) nations which is actually more damaging to our economy than taxes;
2) More efficient corporate operations as decisions are made based on engineering evaluations rather than tax consequences;
3) Reduction in corporations moving out of America, and perhaps some returning;
4) Gaining of power by the public to actually reduce tax burden as total petroleum usage declines;
5) The extension in time of the availability of petroleum, a finite resource that is far too valuable in the long run as a lubricant and/or ingredient in various products to be burned and blown out our exhaust pipes.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.