President is correct that the market (and ANWR) will drive America’s energy independence

WASHINGTON, DC –Today, Americans for Tax Reform (ATR) President Grover Norquist praised
President Bush for his statement explaining that market forces are what drive the price of gasoline and the profits of America’s oil companies. President Bush stated in an interview yesterday, “I think that basically the price is determined by the marketplace and that\’s the way it should be”, discussing recent corporate earnings by domestic oil companies.

“Markets, global affairs and supply and demand forces dictate the cost of gasoline at the pump,” said Grover Norquist, President of Americans for Tax Reform. “Instead of devising creative tax measures to punish investors, consumers and workers, the government should allow the market to provide the incentives that increase supply and develop technology innovations.”

Certain members of Congress have recently attempted to jump-start a debate about imposing a socalled “windfall profits tax” on oil companies due to their earnings. But ATR notes, we have
witnessed this failed policy approach before. President Carter enacted similar legislation and
attempted to control the production and price of oil in the 1970s. Supply-side market forces are not compatible with governmental regulation and only cause instability in the market. Tax hikes on energy will not solve a problem, but create a much greater one with short and long-term
economic repercussions.

“I am happy to see that the President has re-couched his energy rhetoric from his State of the Union speech on Tuesday night,” Norquist continued. “Through the free-market, America can certainly become more self-reliant on our own energy resources–beginning with the opening of Artic National Wildlife Refuge (ANWR) in Alaska.”