Congressman Pence Discusses Democrats’ National Energy Tax on Bloomberg

Congressman Pence Discusses Democrats’ National Energy Tax on Bloomberg

JUNE 26, 2009

To view this clip on Bloomberg with Mark Crumpton, click here.

Transcript below:

Mark Crumpton: For more let's go to Capitol Hill where Congressman Mike Pence is standing by. He is Chairman of the House Republican Conference. Congressman Pence, welcome to Bloomberg News.
 
Rep. Mike Pence: Thank you.
 
Crumpton: Is this passage of the bill a foregone conclusion?
 
Rep. Pence: Well I don't believe that it is. The procedural rule that enabled the bill to go forward today I think received 217 votes, which is just barely enough for it to move forward. Obviously this legislation, which amounts to a national energy tax, I think the Wall Street Journal called it one of the largest tax increases in American history, that will cost millions of American jobs, it will be an even harder lift for the Democrat Majority and it should be. Our hope is that we will be able to stop this legislation today and bring our alternative to the floor in cooperation with Democrats, an ‘all of the above' strategy that tackles energy independence in a comprehensive way, not with a national energy tax.
 
Crumpton: If you would sir, as you can imagine, the Democrats have a different take on this. The House Majority Leader Steny Hoyer discussed it this morning. I want to play you some sound from the Congressman and get your reaction to it.
 
Rep. Steny Hoyer (clip): ‘We think this will be a very positive step forward to create jobs, to grow the economy, and to be energy-independent and energy-efficient.'
 
Crumpton: Congressman Pence, as you heard Hoyer say it is about job creation. Is there a disconnect there? Do you not see jobs being created because of this legislation?
 
Rep. Pence: Well it is not just me. I think C.R. International came out this week and said even accounting for the green jobs that will be created by the cap and trade legislation that America could lose upwards to 2 million jobs per year. The experience with similar legislation in Spain showed that for every green job that was created, I think the number was two traditional manufacturing jobs in the Spanish economy were destroyed. It is one of the reasons why you see countries in Europe moving away from this cap and trade approach to climate change. We don't dispute that there will be some green jobs created but we really do believe that when you raise the energy cost on American manufacturing and business, that will have a profound negative effect. It will result in jobs lost and it will also result in industries, including electrical power plants, moving overseas to countries that don't have this kind of regime.
 
Crumpton: And Congressman, you and your Republican colleagues say the bill would cost every U.S. household about $3,000 or more extra in energy.  The CBO said that that is really about $175 more.  Does that indicate that the bill won't be as costly as you say?
 
Rep. Pence: Well, the CBO estimate has been widely criticized from the standpoint that their gross numbers, the average American household would pay about $1,400 in additional energy costs. But they factor in what people will get back from the government and government programs as a way of mitigating the impact. Also the CBO didn't take into account what is widely accepted as a negative impact on GDP in the next 20 years, if cap and trade becomes law.  There are lots of numbers about what this will cost the average household or business. There is lot of dispute. But there's no dispute that the cap in trade bill will cost millions of American jobs.  Even in the bill itself there is a fund to provide resources for the millions of Americans who will lose their jobs as a result of this legislation becoming law.
 
Crumpton: Congressman Pence, I should point out you are Chair of the GOP American Energy Solutions Group. What is your solution? If the Democratic plan is not something that you feel like you can fall into line with, what is your solution?
 
Rep. Pence: We built something we call the American Energy Act. It is available for your viewers at GOP.gov, they can read all about it. We traveled the country unveiling this legislation over the last month. It says yes to more domestic exploration for oil and natural gas. It uses the revenues from those leases to create a renewable energy trust fund for wind, and solar, and new technologies. It calls for 100 nuclear power plants in the next 20 years and we give incentives for more conservation by small businesses and families. It is an all of the above strategy.  We really believe that is where the American people are at, not a national energy tax.
 
Crumpton: Isn't it a good idea to punish polluters and therefore reward those who are in to clean energy, the clean energy producers?
 
Rep. Pence: The President said one year ago January to the San Francisco Chronicle, I know he says that the polluters will pay the tax now, but a year ago, he said that if the cap in trade bill became law, utility rates would ‘necessarily skyrocket.' And then he said that would be ‘passed along to consumers.' The American people deserve to know that they are going to get the bill in higher utility costs, they are going to get the bill in higher costs in all kinds of goods and services. We can do better. The ‘all of the above' strategy is better instead of a national energy tax that will just cost jobs.
 
Crumpton: Congressman Mike Pence, Republican representing Indiana's Sixth Congressional district.  Congressman thanks.