Kay Bailey Hutchison: “we must address the tax issue. There are some good parts in this energy package. This energy package could increase…”

“we must address the tax issue. There are some good parts in this energy package. This energy package could increase conservation. It could increase the supply of renewable energy sources. I have an amendment that I think is very positive which would provide for more research into new sources of energy, and there are all kinds of renewable, environmentally safe energy possibilities. Yet we have now put a tax bill in this bill which has just gone through committee. It came out yesterday, and we are going to, I am afraid, make the mistake that Congress has made before. In 1980, Congress passed a windfall profits tax. The consequences to the domestic oil industry, to consumers, and to our national security were devastating. In the 6 years that followed that action, domestic oil production dropped by 1.26 billion barrels, and imports of foreign oil rose 13 percent. Today, 60 percent of our oil comes from foreign countries. The collapse of the domestic oil and gas industry had a ripple effect on other sectors of the economy, especially banking and real estate. The windfall profits tax was terrible for this country, and it was repealed. Now we have a tax bill that will have the same effect, with $29 billion in taxes on energy production.”