[Congressional Record Volume 142, Number 73 (Wednesday, May 22, 1996)]
[Extensions of Remarks]
[Pages E878-E879]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       REPEAL OF 4.3-CENT INCREASE IN TRANSPORTATION FUELS TAXES

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                               speech of

                            HON JANE HARMAN

                             of california

                    in the house of representatives

                         Tuesday, May 21, 1996

  Ms. HARMAN. Mr. Speaker, I am disappointed that the House voted last 
night to repeal the 4.3-cent-a-gallon tax.
  Repeal of the gas tax is precisely the wrong step to take as we try 
to move forward with the more important challenges of energy 
independence, national security, and fiscal responsibility--challenges 
which, over the last several years, we have made great strides toward 
meeting.
  First, it's clear that the tax is no more responsible for the recent 
price increases in gasoline than it was for the low gas prices we 
enjoyed in 1994 and 1995. The 4.3-cent-a-gallon gas tax has been in 
place for more than 2 years, but for political reasons, including 
helping a sagging Presidential campaign, it's only become a hot-button 
issue in the last several weeks.
  If we take oil companies at their word, the price spike is due to 
increased demand, a prolonged winter, and an unrealized expectation 
that Iraq would again sell oil to the world market. We talk about 
allowing the market economy to work without interference, but we 
immediately talk about interfering just when the market works as 
predicted. Worse still, we advocate a policy that has no direct bearing 
on the price at the pump. Indeed, what will political leaders say to 
consumers when prices continue to go up in spite of the gas tax repeal 
or when the 4.3 cents is not passed on at the pump.
  Second, Americans continue to enjoy gas prices at both historically 
low levels and at levels considerably lower than those paid by citizens 
of the other industrial nations. In inflation-adjusted terms, the price 
of gas is lower than it was 25 years ago, before the oil embargo.
  The low prices we've enjoyed have renewed some of the habits that 
made us so vulnerable during the OPEC oil embargo of the 1970's and the 
Persian Gulf war. In truth, both to reflect real world circumstances 
and for national security reasons, we need to change commuting and 
driving habits and our dependence on imported oil.
  Third, saving the average motorist, including myself, $30 a year--and 
there is great doubt that the price at the pump will go down as a 
result of the repeal--only makes our task of balancing the Federal 
budget that much more difficult. How do we balance the 8.2 cents a day 
returned to drivers against the $30 billion added to the deficit by 
repealing the tax.
  Just when we're beginning to make sustained progress on bringing down 
the deficit, just when we are within reach of actually balancing the 
budget in 6 years and making a serious and principled commitment to 
real fiscal responsibility, we're going to add $30 billion to the 
Nation's debt.
  Even without this added debt, we have to realize that we have many 
difficult budget choices still ahead. Where should we cut? Are the 
American people willing and ready to cut aid to education as Majority 
Leader Dick Armey suggested we should do--or cancer research, or public 
broadcasting, or Medicare?

[[Page E879]]

  The proponents of repeal are eyeing as a possible offset for its cost 
reductions in the bank insurance funds. Heaven help us if we ever need 
to draw on those funds to pay depositors should we experience a banking 
crisis like the S&L debacle of only a decade ago. I guess we'll leave 
that problem for another day.
  The difficulty in finding a consensus behind a balanced budget plan 
will only be exacerbated by repealing the gas tax. Americans understand 
that.
  They also understand that cheap gas means dependence on uncertain 
foreign sources--sources that one day may again require our sons and 
daughters to fight to secure.
  And, most importantly, they understand that the 4.3 cent-a-gallon tax 
did not cause the recent price increase and that its repeal will not 
bring prices down.
  Repealing the tax is pandering and cynical. Let's not try to fool 
Americans into believing otherwise.

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