Max Baucus: “This amendment consists of the energy tax incentives reported by the Finance Committee. Let me explain why this…”

“This amendment consists of the energy tax incentives reported by the Finance Committee. Let me explain why this amendment is necessary. The short term energy crisis has ended. But the long term problem has not. Earlier this year, at a House hearing, Energy Secretary Abraham summed up the energy situation. He said that "Over the last 12 months we have seen energy supply shortages, natural gas and gasoline price spikes in the Midwest and California, and terrorist attacks within our borders." He was right on target. His words emphasize that energy independence matters. It matters to our economy, to our national security, and to the well-being of average American families. Take one example. Gas prices. Remember last summer. The price was $1.70 per gallon. A record high. Just 6 weeks ago, the national average retail price for gasoline was $1.14 per gallon. Since then, gas prices have climbed again. Today, the national average price is back up to $1.42 per gallon. Over the past several years, prices have been extremely volatile. This volatility has had a sharp economic effect, disrupting businesses and lives. Here is why. The difference between $1.14 per gallon and $1.70 per gallon is 56 cents per gallon. The average household uses about 1,100 gallons of automobile gasoline a year. All else being equal, that amounts to a swing in household fuel expenditures of more than $600, just for transportation. That is like a $600 tax increase, on every American family.”