4. No, not sound. This doesn't make it more expensive 'relative to foreign production'
I'm not an expert, but to me it only appears remove a protectionist policy that applies to everything else made in America. If we can agree that fossil fuels are an addiction the US can not afford - why do we want to encourage it further. Oil is already heavily subsidized by the US presence in the middle east - and the US taxpayers will undoubtedly continue to take care the oil industry in this way so they don't really have to "take care of themselves"
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