[Congressional Record Volume 147, Number 52 (Tuesday, April 24, 2001)]
[Extensions of Remarks]
[Page E594]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             THE FREEDOM FROM UNFAIR ENERGY LEVY ACT (FUEL)

                                 ______
                                 

                    HON. F. JAMES SENSENBRENNER, JR.

                              of wisconsin

                    in the house of representatives

                        Tuesday, April 24, 2001

  Mr. SENSENBRENNER. Mr. Speaker, today I am re-introducing 
legislation, the Freedom from Unfair Energy Levy Act or ``FUEL Act,'' 
to alleviate the impact of current high fuel prices. My legislation 
would place a six-month moratorium on federal motor fuel excise taxes, 
including the 18.3 cent per gallon tax consumers pay for gasoline and 
the 24.3 cent per gallon tax on diesel fuel, and eliminate permanently 
the 4.3 cent per gallon tax increase approved in 1993.
  Last year, when I first introduced the FUEL Act, I warned of the 
threat that high energy prices posed to our economy. As was illustrated 
clearly in the 1970s and early 1990s, fuel price hikes can cause 
widespread damage to economic well being. Unfortunately, high energy 
costs have continued to plague the U.S. since that warning and our 
economy is beginning to suffer the consequences. Some have argued that 
money from fuel taxes is more useful in Washington than in Americans' 
pockets, helping motorists afford the high price of gasoline. In 
reality, the economic damage caused by high fuel prices far outweighs 
any impact on federal spending that a six-month moratorium could cause. 
Congress should act now to mitigate the economic damage caused by steep 
energy costs.
  The current high gasoline prices across the country are a 
continuation of the energy problems that began during the Clinton 
administration. In recent years, domestic energy production has fallen 
to its lowest level since before World War II. The failure to increase 
domestic production has made the U.S. increasingly vulnerable to the 
whims of OPEC nations, who recently slashed their oil production in 
order to increase their profitability. Compounding the problem is the 
increase in the gasoline tax that was enacted in 1993. That year, when 
fuel prices were low, Democrats in Congress, President Clinton, and a 
tie-breaking vote by Vice President Gore combined to increase federal 
fuel taxes. The FUEL Act would reverse that increase and represents a 
sound first step in the development of a comprehensive, long-term 
policy to lower energy costs.
  Besides addressing long-term concerns, my legislation provides 
immediate assistance to the problem of high fuel costs. By halting the 
collection of federal fuel taxes for six months, consumers will see an 
immediate dip of nearly 20 cents in the cost of gasoline at the pump. 
This six month moratorium will help to keep prices down over the summer 
months which often see steep fuel cost increases. I urge my colleagues 
to support this legislation to fight rising energy prices.

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