[Congressional Record Volume 151, Number 129 (Thursday, October 6, 2005)]
[Extensions of Remarks]
[Page E2031]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              INTRODUCTION OF THE AFFORDABLE GAS PRICE ACT

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                             HON. RON PAUL

                                of texas

                    in the house of representatives

                       Thursday, October 6, 2005

  Mr. PAUL. Mr. Speaker, I rise to introduce the Affordable Gas Price 
Act. This legislation reduces gas prices by reforming government 
policies that artificially inflate the price of gas. As I need not 
remind my colleagues, the American people have been hard hit in recent 
months by skyrocketing gas prices. In some parts of the country, gas 
prices have risen to as much as $4 per gallon.
  This increase in the price of gas threatens our already fragile 
economy and diminishes the quality of life for all Americans. One 
industry that is particularly hard hit is the trucking industry. The 
effects of high gas prices on the trucking industry will be reflected 
in increased costs for numerous consumer goods, thus further harming 
American consumers.
  Unfortunately, many proposals to address the problem of higher energy 
prices involve increasing government interference in the market through 
policies such as price controls. These big government solutions will, 
at best, prove ineffective and, at worst, bring back the fuel shortages 
and gas lines of the seventies.
  Instead of expanding government, Congress should repeal Federal laws 
and policies that raise the price of gas, either directly through taxes 
or indirectly through regulations that discourage the development of 
new fuel sources. This is why my legislation repeals the Federal 
moratorium on offshore drilling and allows oil exploration in the ANWR 
reserve in Alaska. My bill also ensures that the National Environmental 
Policy Act's environmental impact statement requirement will no longer 
be used as a tool to force refiners to waste valuable time and capital 
on nuisance litigation. The Affordable Gas Price Act also provides tax 
incentives to encourage investment in new refineries.
  Federal fuel taxes are a major part of gasoline's cost. The 
Affordable Gas Price Act suspends the Federal gasoline tax any time the 
average gas prices exceeds $3 per gallon. During the suspension, the 
Federal Government will have a legal responsibility to ensure the 
Federal highway trust fund remains funded. My bill also raises the 
amount of mileage reimbursement not subject to taxes, and, during times 
of high oil prices, provides the same mileage reimbursement benefit to 
charity and medical organizations as provided to businesses.
  Misguided and outdated trade policies are also artificially raising 
the price of gas. For instance, even though Russia and Kazakhstan allow 
their citizens the right and opportunity to emigrate, they are still 
subject to Jackson-Vanik sanctions, even though Jackson-Vanik was a 
reaction to the Soviet Union's highly restrictive emigration policy. 
Eliminating Jackson-Vanik's threat of trade-restricting sanctions would 
increase the United States access to oil supplies from non-Arab 
countries. Thus, my bill terminates the application of title IV of the 
Trade Act of 1974 to Russia and Kazakhstan, allowing Americans to enjoy 
the benefits of free trade with these oil-producing nations.
  Finally, the Affordable Gas Price Act creates a Federal study on how 
the abandonment of the gold standard and the adoption of freely 
floating currencies are affecting the price of oil. It is no 
coincidence that oil prices first became an issue shortly after 
President Nixon unilaterally severed the dollar's last connection to 
gold. The system of fiat money makes consumers vulnerable to inflation 
and to constant fluctuations in the prices of essential goods such as 
oil.
  In conclusion, Mr. Speaker, I urge my colleagues to support the 
Affordable Gas Price Act and end government policies that increase the 
cost of gasoline.

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