Congressman McCaul Calls for Economic Prosperity: Bold Energy Plan, Low Taxes and Smart Spending

Press Release

Congressman McCaul Calls for Economic Prosperity: Bold Energy Plan, Low Taxes and Smart Spending

A bold, conservative energy plan, low taxes and watching what we spend are the primary components of Congressman Michael McCaul's (R-TX 10) proposal to turn around the economy and bring down gas prices that have soared to new records under Democratic leadership.

Congressman McCaul explained his plan as he continued his Memorial Week recess Economic Prosperity Tour of the district in Katy and Sealy. He discussed several issues that Texas families confront every day, including gas prices, taxes, spending and security. The following is a synopsis of Congressman McCaul's position on these issues.

GAS PRICES
"We can and we will stabilize prices, but we must have the political will to wean our dependency on foreign oil and we must be committed to a long-term strategy."

$3.77 = Texas average for one gallon of regular unleaded
$3.88 = National average May 23, 2008
$2.33 = National average January 2007 when Democrats took control of Congress

The problem is two-fold.
1) Increased worldwide demand. We have no control over that.
2) Only 25% of the oil we consume is produced domestically.

AMERICAN MADE ENERGY

"The truth is, we didn't get into this mess overnight and we're not getting out of it overnight, either."

Congressman McCaul offers a long-term solution to bring gas prices down and decrease our dependency on foreign oil - much of which is produced by countries that support terrorism.

Alternative energy: As a member of the Science and Technology Committee, Congressman McCaul is a longtime believer that we must invest in alternative energy: hydro-electric, wind, solar, nuclear, plug-in hybrids, etc. The world cannot rely strictly on oil long-term.

Increased domestic production by drilling in ANWR and OCS. Reports indicate that even with alternative advances, the United States will still require oil and gas for 60% of our energy needs 20 years from now.

Permit more refineries: no new permits have been permitted in 30 years.

Strategic Petroleum Reserve: Temporarily stop adding to it the until gas prices are under control. Congressman McCaul disagrees with President Bush on this strategy.

"NO MORE EXCUSES ENERGY ACT OF 2007" (sponsor)
- Manhattan Project for Energy Independence
- Alternative energy tax credits (creates and extends)
- Opens "off limits areas" for drilling
- Tax exempt bonds for new refineries
- Nuclear power

No More Excuses Energy Act of 2007 - Requires the Secretary of the Treasury to prescribe regulations for the taxpayer election to expense the cost of certain refinery property not later than 60 days after the enactment of this Act.

Amends the Internal Revenue Code to: (1) allow the issuance of tax exempt facility bonds for the financing of domestic use oil refinery facilities; (2) extend through 2018 the tax credit for producing electricity from wind facilities; and (3) allow tax credits for the production of electricity from nuclear energy, natural gas production, and carbon dioxide tertiary injectant processes.

Requires the President to designate at least 10 sites for oil or natural gas refineries on federal lands and make such sites available to the private sector for construction of refineries.

Prohibits the Nuclear Regulatory Commission from denying an application for nuclear waste disposal on the grounds of present or future insufficient capacity.

Terminates all existing federal laws prohibiting expenditures to conduct oil and natural gas leasing and preleasing activities in the Outer Continental Shelf.

American-Made Energy and Good Jobs Act - Directs the Secretary of the Interior to establish and implement a competitive oil and gas leasing program in the Coastal Plain of Alaska.

Repeals the prohibition against producing oil and gas from the Arctic National Wildlife Refuge.

Sets forth requirements for the sale of oil and natural gas leases in the Coastal Plain, environmental protection, transportation easements, and royalty payments to Alaska.

Establishes in the Treasury the Coastal Plain Local Government Impact Aid Assistance Fund to assist Alaska jurisdictions that are directly impacted by oil and gas exploration and production in the Coastal Plain.

TAXES
"The good news in all of this is that even in difficult times, the United States has a large, diverse economy, and it will improve. But one thing we know we must do is to keep taxes and spending low."

Congressman McCaul has voted consistently to extend important tax credits and deductions because he believes the money is better spent in the hands of the people who earn it than in the hands of the government.

However, in March, Rep. McCaul was forced to vote against a Democratic proposal which included the extension of the R&D tax credit and state and local sales tax deductions, because the Democratic controlled Congress wants Americans to pay for these tax cuts with $54 billion in new, permanent taxes. Congressman McCaul believes that defeats the purpose, and is the epitome of a Washington shell game.

In fact, the Democratic budget Congressman McCaul voted against amounts to the largest tax increase in history: $683 billion. The average Texas taxpayer will see an increase of almost $3,000 a year. Much of that increase comes from Democrats' failure to renew several other tax cuts that have or will expire.

**Tax cut Expiration Date
Research and Development Tax Credit EXPIRED
State and Local Sales Tax Deduction EXPIRED
Alternative Minimum Tax Exemption 12-31-2008
Marriage Penalty (Reduces standard deduction for joint filing) 12-31-2010
• 200% of individual deduction to 167%

Death Tax Reduction (0% percent in '10, 55% in '11) 12-31-2010

Child Tax Credit (Drops from $1,000 to $500) 12-31-2010

Lowered Income Tax Brackets 12-31-2010
• The marginal income tax rates will increase as follows:
o 35% bracket will increase to 39.6%
o 33% bracket will increase to 36%
o 28% bracket will increase to 31%
o 25% bracket will increase to 28%
o 10% and 15% brackets will condense to 15%

Reduced Capital Gains Rate 12-31-2010
• The capital gains rates for individuals will increase from
o 0% to 10%.
o 15% to 20%

**Because these tax cuts are assumed to expire in the Democratic Budget they will be forced to find offsets if they decide to extend any of these tax cuts. In other words, more tax increases are coming.

SPENDING (EARMARKS)
"Earmarks are great and necessary tools when they are used properly. They get roads and bridges built. They help fight crime and fund assistance programs. But this process needs to stop until we find a way to make it 100% transparent and stop wasting your money."

Instead of increasing taxes, we need to cut spending. One way of doing that is to make sure we are not wasting money on pet projects that only benefit a small few… like the Bridge to Nowhere in Alaska. Too many special interest projects have misspent your hard earned tax dollars.

That is why I am doing my part to stop it. I have self-imposed a one-year moratorium on the federal earmark process.

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