[Congressional Record Volume 141, Number 196 (Monday, December 11, 1995)]
[Senate]
[Pages S18315-S18316]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    PERCENTAGE DEPLETION ALLOCATION

  Mr. MURKOWSKI. I thank the Chair. I will share with my colleagues a 
little known fact concerning the effect of the Clinton administration's 
new proposed 7-year balanced budget and the effect it will have for 
thousands of working men and women in Western States, those men and 
women working specifically in the mining industry.
  This is a $1 billion budget bombshell that will cost thousands of 
domestic jobs, and it will increase our domestic balance of payments, 
because buried in the details of the Clinton budget alternative is a 
provision that would hike taxes on many mining operations on Federal 
land.
  The administration is proposing an elimination of the percentage 
depletion allowance for nonfuel minerals mined on public lands where 
mining rights were obtained by the patent process. ``Patent process'' 
can be construed to mean patents, as well as the process of applying 
for a patent.
  This is extraordinarily far reaching, Mr. President. According to the 
administration, this would save--they use the word ``save''--$954 
million over 10 years, placing a $1 billion burden on our Nation's 
miners.
  You can imagine the significance of trying to be competitive in a 
world market, suddenly faced with a reality of losing the depletion 
allowance, which in many cases allows our mining industry to be 
competitive internationally.
  Why the White House has singled out the mining industry for 
punishment is anyone's guess. It appears to be the latest assault by 
Secretary Babbitt, the Secretary of the Interior, and the Clinton 
administration on the West.
  The administration seems to want to paint the miners as some kind of 
corporate guru, the exception rather than the rule as far as the 
reality is concerned, because many of the operations are small mom-and-
pop operations that are clearly in jeopardy by this proposal.
  It would provide a war on hard-working people and their jobs. Why 
they are singled out as the only industry for termination, one can only 
speculate.
  Oil, gas and coal jobs are not put in jeopardy by this move by the 
administration to lose the depletion allowance. However, one should 
reflect on the fact that this may be the camel's nose under the tent. 
It is only a matter of time until this administration will again use 
the Tax Code to go after oil and gas and the coal industry.
  Having heard my friend from North Dakota express his concern over the 
deficit balance of payments, I again remind the President and my 
colleagues, this Nation grew strong on the development of our natural 
resources, our oil, our coal, our gas, our timbering industry, our 
mining industry, our grazing industry. All these appear to be put in 
jeopardy. In fact, the development of resources from all public lands 
appears to be on the administration's blacklist. 

[[Page S18316]]

  The rationale of how they could see the tremendous decline in these 
high-paying blue collar jobs and the reality that they seem to think it 
is better to import is beyond me. That is specifically exporting our 
dollars and our jobs overseas.
  I remind our colleagues, the hard rock mining industry provides 
approximately 120,000 direct and indirect jobs nationwide. This 
proposal of the administration could eliminate 60,000 to 70,000 jobs. 
It is shortsighted and, once again, the White House seems to be proving 
it really does not care about the men and women working in America's 
resource industries. When we import more minerals, again, we are 
exporting jobs and exporting dollars. Unfortunately, the administration 
seems to be putting politics before policy. It may look good in the 
press but it would simply destroy America's mining industry by putting 
a billion-dollar burden on their backs and still expect them to be 
competitive internationally.

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