Imposing a Minimum Effective Tax Rate for High-Income Taxpayers-- Motion to Proceed

Floor Speech

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Mr. WICKER. Mr. President, we continue to watch fuel costs skyrocket--shockingly so in the last 3 months--as the average price of a gallon of gasoline breaks records again and again for this time of year. Today, the national average, when I last checked, was $3.91 per gallon.

When President Obama took office, Americans paid $1.85 for a gallon of regular gasoline. Now they are paying more than twice that price, with analysts projecting even higher spikes on the horizon. Some are speculating gasoline prices could top $5 per gallon by summer. Now Senate Democrats propose raising taxes on gasoline production.

We hear a lot about an all-of-the-above energy approach, and that needs to be put into practice. This should include expanding access to America's critical resources. Instead, the President insists on flawed energy strategies such as using taxpayer money for high-risk projects such as Solyndra, while delaying drilling in the gulf.

The President has slowed the permitting process, he has blocked leases, and he has supported higher energy taxes and more regulations. His actions have come at the expense of valuable opportunities for greater domestic energy. The gains our energy producers have made are in spite of the President's policies, not because of them.

The de facto moratorium on drilling in the Gulf of Mexico made it clear that strengthening the country's energy security was not a White House priority. The plan the President proposed for offshore oil and gas leasing for the next 5 years would open less than 3 percent of offshore areas for production.

Then there was the rejection by the President of the Keystone XL Pipeline--the subject of an extensive environmental vetting process and a project which would guarantee nearby available oil from our largest trading partner. The President may talk about the need for oil and gas pipelines and even try to take credit for the lower part of the pipeline that did not need his approval, but there is no denying his administration is responsible for roadblocks standing in the way of a better national energy policy.

The 830,000 barrels per day the Keystone Pipeline would transport offers a 7-percent increase to current imports. Vetoing it keeps Americans vulnerable to spiking gas prices and the dangerous whims of energy providers from volatile regions of the world.

High fuel prices can have far-reaching economic effects. According to the Oil Price Information Service, Americans spent more on gasoline in 2011 than in any other year in the past three decades--some $481 billion. For the average household, about 8.4 percent of the family budget or $4,155 went toward filling up at the pump last year. Of course, it is more this year. This means consumers have less money to spend and invest in their local communities, ultimately hurting the economic growth we desperately need.

In 2008, then-Senator Obama said he would have preferred a gradual adjustment of gas prices. That same year, Energy Secretary-to-be Steven Chu told the Wall Street Journal: ``Somehow we have to figure out how to boost the price of gasoline to the levels of Europe.'' This is the President's choice for Energy Secretary, someone who wants our gasoline prices to be at the $8-per-gallon level they are experiencing in Europe. This mentality has not changed since 2008. Earlier this month, President Obama said the only solution was to start using less. That lowers the demand and prices come down, according to the President. He later asserted that ``how much oil we produce at home'' is ``not going to set the price of gas worldwide.'' Somehow, using less will lower the prices, according to the President, but producing more will not lower the prices. In other words, the President believes in only half the principle of supply and demand.

Indeed, basic economics tells us otherwise. It tells us that alleviating demand can lower prices but having a greater supply does that too. The argument the President is trying to make that domestic production is inconsequential does not add up. Not expanding production forces American wealth to go overseas because we have to buy our oil from overseas. As Charles Krauthammer recently wrote in the Washington Post:

Drill here and you stanch the hemorrhage. You keep those dollars within the United States economy.

That is exactly what we need to do in these troubling times.

According to the Institute for Energy Research, we have enough oil within our borders to supply our own fuel needs for 250 years. That is not Senator Wicker talking; that is not a Presidential candidate talking; that is the Institute for Energy Research--250 years we have in the United States. Yet they are being kept off-limits by the administration.

Now the administration wants an $85 billion energy tax hike. This new tax will not translate into cheaper gasoline, a fact my Democratic colleagues have, in fact, acknowledged. It will make it more expensive to produce, drive up imports, and hamper economic investment.

According to a study by the Congressional Research Service, higher energy taxes will increase gas prices and likely increase foreign dependence--exactly what we don't want to do. This would ultimately hurt average Americans who depend on affordable gas prices to get to work every day and businesses--small businesses--that need fuel to transport their goods and services. We have seen how the administration likes to use taxpayer money on high-risk bets such as Solyndra and algae. Instead of gambling on unproven ideas, we should be ensuring economic growth with policies that strengthen our energy capacity. We are blessed to live in a country with plentiful resources and we are far from maximizing America's energy potential.

I have filed amendment No. 1966 to this bill. The amendment would establish a production goal for the Obama administration's 5-year offshore oil and gas leasing plan. It calls for 3 million barrels of oil per day and 10 billion cubic feet of natural gas per day by the year 2027. Compared to today's levels, this increase in production would triple America's current offshore production and reduce foreign imports by nearly one-third. By setting these benchmarks for the output of oil and natural gas, we can make measurable progress toward energy independence.

So I would propound this parliamentary inquiry, Mr. President:

If we were on the bill at this point, would it be in order for me to offer such an amendment, No. 1966, at this time?

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Mr. WICKER. I regret that. I hope we can negotiate on both sides of the aisle so amendments such as this can be offered.

To set benchmarks, we could use an additional 3 million barrels of oil per day and 10 billion additional cubic feet of natural gas per day to help us attack this very serious energy problem.

I would simply conclude by saying today's high gasoline prices confirm the urgency of pursuing better energy strategies as demand for oil continues to increase across the globe. Taking steps now is essential to meeting future needs and bringing relief at the pump.

Seeing no one who is seeking to speak--does the Senator seek to speak? If so, I yield the floor.

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