FOR IMMEDIATE RELEASE: June 19, 2007
CONTACT: Geoff Embler or Matt Mackowiak
Sen. Hutchison Calls Energy Tax Package a “Disaster”
Finance Committee Tax Package Discourages Domestic Exploration, Hurts Consumers
WASHINGTON -- U.S. Senator Kay Bailey Hutchison (R-TX), Chairman of the Republican Policy Committee, and U.S. Rep. Kevin Brady (R-TX), a member of the Ways & Means Committee, today are reintroducing The Public Servant Retirement Protection Act (S.1647 and H.R. 2772).
U.S. Senator Kay Bailey Hutchison (R-TX), Chairman of the Republican Policy Committee, today expressed her disappointment and opposition to an energy tax package that was reported out of the Senate Finance Committee by a 15-5 vote. If the package is enacted, as part of the Energy bill currently being considered by the Senate, it would discourage domestic oil and natural gas exploration and new refinery capacity investments.
“At a time when Americans are faced with record gas prices, the last thing we need to be doing is discouraging domestic exploration by slapping $29 billion in taxes onto production,” said Sen. Hutchison. “These taxes will be passed on to consumers in the form of higher gas prices. The production of renewable energy is a noble goal. But doing so through a tax increase on oil and gas will not lead to an increase in overall energy production.”
Last week, Senators Hutchison, Cornyn, Inhofe, Brownback, Dole, Craig, and Enzi sent a letter to Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA) expressing concern over the anticipated energy tax piece.
Specific provisions in the tax package, otherwise known as “pay-fors,” directed to the Energy bill, include:
* Repeal of the Section 199 manufacturer’s deduction for refineries ($9.433 billion over ten years)
* Establish an Outer Continental Shelf (OCS) excise tax (13%) on crude oil or natural gas produced from OCS in the Gulf of Mexico ($10.684 billion over ten years)
* Imposes a tax on finished gasoline ($824 million over ten years)
* Eliminates Section 907 tax credits for foreign oil production, exposing them to double taxation ($3.187 billion over ten years)
“This tax package sends a mixed message to our domestic oil and gas industry,” said Sen. Hutchison. “On the one hand, Congress tells them to increase domestic production and refinery capacity in order to lower prices, and then Congress increases their taxes, which will only increase prices.”
Sen. Hutchison, in the letter, also detailed her concern about the competitiveness of American companies, burdening them with tax obligations that their foreign competitors do not bear.
Sen. Hutchison will oppose this package as part of the Senate Energy bill.
--END--
|
