Max Baucus: “Webster's define a tax as a requirement to pay a percentage of income from property or value for support of the…”

“Webster's define a tax as a requirement to pay a percentage of income from property or value for support of the Government. So we can see that a tax can come in many forms--a direct levy, or a hidden fee that sneaks up on the taxpayers under a cover name. That is precisely what the Clinton administration and some here in Congress have in mind for many Montana and western ratepayers. As you may be aware, the administration in their fiscal year 1996 budget proposes to sell off four Power Marketing Administrations: Alaska Power, Southeastern Power, Southwestern Power, and the Western Area Power Administration, otherwise known as WAPA which brings low-cost electricity to thousands of eastern Montana families, ranchers, farms, and small businesses. They have found enthusiastic allies in the new House leadership. And together they say they will privatize these electricity providers. They predict a windfall, a one-time profit of $3.7 billion. If anyone promises you a free $3.7 billion, we all know you had better think carefully. You had better look at it real close. There is no exception. I submit that privatizing the Power Marketing Administrations is a bad idea. It is shortsighted, and it hurts. It does not help. It hurts rural America. Privatization cannot work when its result is to simply create four huge monopolies which will gouge their capital market like any other monopoly. So at its core, the proposal to sell off PMA's is no more than back-door tax repeal.”