Kerry Backed Effort to Stop Cheney Gas Price HikeKerry opposed Cheney plan that would have raised gas prices by $1.2 trillion and cut 400,000 jobs.
April 06, 2004
For Immediate Release
In 1986, then-Congressman Dick Cheney proposed a tax on oil that would have raised gasoline prices and laid 400,000 workers off. Despite this bill, the Bush-Cheney campaign claims that they are interested in lower gas prices and opposed to higher taxes.
Senator Kerry helped stop Cheney’s proposed gas price hike, co-sponsoring for a resolution in opposition to the plan. Even Cheney’s fellow Republican lawmakers opposed his gas price hike -- 15 Senators joined Kerry to sponsor a resolution in 1987 to stop Cheney’s bill.
Cheney Opposed Low Oil Prices
In October 1986, Cheney introduced legislation to create a new import tax that would have increased the price of oil and ultimately the price of gasoline by billions of dollars per year. On the House floor Cheney said “let us rid ourselves of the fiction that low oil prices are somehow good for the United States.”
Cheney Bill would Cost Consumers $1.2 Trillion
The Congressional Research Service, in coordination with staffers from the Senate Energy Committee, studied the effects of Cheney’s bill on consumers. The report states that if Cheney’s plan had been enacted in 1986 it would have cost consumers $1.2 trillion.
Bill Would Have Led to Loss of 400,000 jobs
Senator John Heinz of Pennsylvania, a Republican, said in February 1987 that the proposals would add $1.3 billion per year to the energy costs of Pennsylvania consumers. He also cited a study done for a Federal Reserve Bank suggesting that a $5 per barrel fee would lead to the loss of 400,000 jobs nationwide and cause inflation to soar.
Kerry and 15 Senators from Both Parties Joined in Opposition to Cheney’s Bill
On February 3rd, 1987, John Kerry and 15 Senators cosponsored a resolution in opposition to import fees and taxes on oil, including Republican Senators John Heinz and Alphonse D’Amato. Senator Pell said that “the truth is that an oil import fee is not a good idea and would certainly not be painless for consumers. An oil import fee would impose heavy new costs on all who use oil and oil products in manufacturing and production. It would also impose higher costs on all who heat their homes with oil or use oil-generated electricity. In addition, by increasing the production costs of energy and raw materials, an oil import fee would make American manufacturers far less competitive in world markets—a situation certainly not tolerable with today's current trade imbalance.
Bush-Cheney Campaign Refuse to Acknowledge Cheney’s Call for Higher Taxes
When asked about Cheney’s bill to increase oil taxes, Scott Stanzel, a spokesman for the Bush-Cheney campaign, said that “President Bush and Vice President Cheney want to keep taxes low and keep the economy moving. They have proposed an energy plan that will provide for a stable, affordable and secure energy supply.”
While the Bush-Cheney campaign failed to acknowledge the higher tax and gas prices as a result of Cheney’s bill, Cheney’s office refused to comment about the bill.
http://www.johnkerry.com/pressroom/releases/pr_2004_0406.html