The Financial Crisis in America: Open Response to a Michigan Senator

Dear Senator [in reply to her response below]:

I’m terribly disappointed that you mask the truth of Sen. Reid’s proposal. Title I of the Bill provides that: The Consumer-First Energy Act of 2008 would create a tax on “windfall profits” of the major oil companies at a special supplemental rate of 25 percent. This is directly from the Democratic Policy Committee’s own website.

It is just dishonest to suggest that the Bill is about repealing tax subsidies when its primary purpose is a tax that will cause oil companies to severely restrict the fuel they supply – and force costs to go much higher than they already are.

Your commentary reminds me of Sen. Obama’s commentary on taxes. He claims he will cut taxes on 91 or 95% of Americans – depending on the day. But this pretends that the repeal of the Bush tax cuts will not raise taxes on every single American. It absolutely will. Every tax rate on every citizen will go up. The little people, the Barney Smith’s of the world, who tend to vote for Democrats, get mislead and overwhelmed by the crushing force of the government. They will be hurt when taxes on profitable businesses go up as well.

Sometimes the Republicans expand the government is unwise ways too, but at least they stand firmly for lower taxes when the economy is already weak, and at least they will be somewhat permissive about using the oil and gas we have and need.

This is no time for new taxes. This Bill will destroy an economy that is already badly hurting. I am very disappointed in your partisan portrayal of the problem. Our economy is hurting, and badly. We need the freedom to drill for more energy resources, in more places, with more freedom to use our resources. Our environment will be better cared for as we have more prosperity. If our economy continues to be hurt, the environment will ultimately suffer as well. Recession and poverty beget pollution and poor public health. It is a myth that choking off energy exploration and development protects the environment. We need to be drilling in Michigan as soon as possible and we can do this in clean, safe ways.

We will benefit from alternative energy resources as the market actually wants them. I have a good friend who is a partner in an alternative energy investment firm and they have had to change their strategy away from new sources of energy to gaining greater efficiencies with existing sources of energy produced largely from gas, cola and oil in order to survive in the market. The marketplace, consumers as well as producers are not convinced about wind, solar and other forms of alternative energy yet. And government infusions of money won’t help. It would help to get out of the way of development of nuclear power. It is clean and efficient. The government will never be an effective arbiter of what energy sources will be used in the future – the market, the consumers and producers, have to decide that.

Please vote for allowing new growth in our state’s economy and not to hurt our opportunities for jobs and prosperity further by adding new taxes and continuing to prohibit energy exploration.

A J Thompson

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From: Senator Debbie Stabenow [mailto:senator@stabenow.senate.gov]
Sent: Wednesday, September 17, 2008 4:55 PM
To: ajt@elusen.com
Subject: Re: Please Vote Against Any Form of New Taxes on Energy

September 17, 2008

[redacted address and personal information]

Thank you . . .

. . for contacting me about our nation’s energy policies. I understand your concerns.

At a time when Michigan faces unprecedented challenges, we need to make responsible decisions that benefit both the environment and American jobs. I understand your concerns about the cost of new energy proposals and rising energy prices facing consumers and businesses. However, oil profits are at an astronomical high, as these oil companies continue to be subsidized by American taxpayers. Instead, we need to be investing in new, cleaner forms of energy, and leveling the playing field for these new industries.

As you may know, Senate Majority Leader Harry Reid (D-Nevada) introduced the Consumer-First Energy Act of 2008 on May 20. This legislation would eliminate taxpayer subsidies to oil companies. This legislation also makes it illegal for suppliers to sell oil or gasoline at an unconscionably excessive price. Additionally, this bill would direct the Secretary of Energy and the Interior to suspend shipments of petroleum to the Strategic Petroleum Reserve until the beginning of 2009. This legislation was blocked from further debate in Congress in June. If it comes before me again in the Senate, I will keep your concerns in mind.

I believe we need a common-sense and diversified approach to our growing energy problems that doesn’t cost us jobs or inhibit economic growth, and proposed tax incentives will provide a strong balance. Tax incentives for new renewable energy can promote a more diverse energy supply, reducing our dependence on foreign oil. These incentives would also lead to lower energy prices and new green collar jobs. As a member of the Finance Committee, I fought for a tax package that would promote fuel cells, E85 ethanol, hybrid plug-ins, advanced batteries, and other important technological investments. This package also included tax credits for the production of advanced biofuels and renewable electricity. Unfortunately, the President and the minority party have been obstructing these important measures.

Investments in new technologies can create new jobs that utilize Michigan’s engineering, manufacturing, and agricultural expertise, while protecting the environment. I will continue to work to bring new, green collar jobs to Michigan that will strengthen our competiveness in a global economy and reduce American dependence on foreign oil.

Thank you again for contacting me. Please continue to keep me informed about issues of concern to you and your family.

Sincerely,

Debbie Stabenow

United States Senator