Senate leaders have received a letter signed by several large industry groups, including the National Association of Manufacturers (NAM) and the American Chemistry Council (ACC) expressing opposition to reinstatement of Superfund taxes, which expired on December 31, 1995.
The letter, which was addressed to Senate Majority Leader Tom Daschle (D-SD), Minority Leader Trent Lott (R-MS), Finance Committee Chairman Max Baucus (D-MT), and Committee Ranking Minority Member Charles Grassley (R-IA), also was signed by the American Petroleum Institute (API), the Business Roundtable, and the U.S. Chamber of Commerce.
In part because of the decreased revenue as a result of the expiration of the Superfund taxes on the oil and chemical industries, the Superfund Trust Fund is expected to run out of money within the next 12-15 months. Administration officials and Members of Congress have been searching for a way to boost funding, but have no concrete proposals at this time. Some Democrats also have proposed reinstating the Superfund taxes as a way to raise money to offset spending for energy proposals, an idea that industry adamantly opposes. “The debate over energy policy should not be about imposing new taxes,” stated the letter. “It should focus on enhancing America’s security through increased production of all types of energy, improved conservation and energy efficiency, more research and technology and alternative energy, increased access to domestic sources with continued environmental protections, and improved distribution.”
The Senate Committee on Finance approved a $14.5 billion package of energy tax incentives on February 13, including incentives for the use of alternative fuels and vehicles, incentives for conservation and energy efficiency, incentives for clean coal technology, and tax breaks for the oil and gas industry. Sen. Daschle has indicated that the Senate will attempt to pay for the entire cost of the tax incentives through offsets.
