Sydney Hay for Congress

Sydney Hay Plan for Energy Independence

Concerned About Energy?

As you know, global demand for energy is increasing and much of the world’s oil is delivered in a market dominated by foreign and often unstable nations. Limitations on domestic oil production, enacted by Congress, have contributed to a steady decline in domestic production since 1985. In fact, since 1994, the United States has been importing more oil from foreign nations than it produces domestically -- a trend we desperately need to reverse.

While the government restricts domestic exploration and development of many of our natural resources, Congress also creates artificial markets when they subsidize certain sectors in the energy market, thereby creating an unfriendly market for other energy sources, such as solar, hydrogen and wind-generated power, to name a few.

All Americans want a clean and healthy environment to enjoy with their families and to pass along to future generations. However, far too often, those of us who wish the United States to be energy independent are unfairly characterized as being against a safe and healthy environment for our families. That’s nonsense. As a mother and grandmother, I want our environment to be healthier for my grandchildren than it is for me. We can do that, and we can make our nation energy independent in doing so.

Today, many Americans harbor misunderstandings about energy exploration and production, the latest technologies used for energy extraction, how the environment is impacted, and market forces that cause increased prices at the pump and at the grocery store. Americans simply want the nation to meet their energy needs at affordable prices, while also taking steps to protect the environment. They elect representatives to solve the problem but, partisanship often leads Congress to enact policies that not only do not solve the problem, but actually make it worse, harming the nation’s ability to meet its energy needs and hurting the economy.

What We Must Do To Become Energy Independent

As a nation, our energy policy should be based on free market principles. Far too often, government intervention creates unfair market situations. Government should never be in the position of picking winners and losers.

Our political leaders must rely on the private sector’s research and development capabilities to deliver the necessary energy supplies and viable new energy sources. If we are to truly become energy independent, we must repeal federally-directed mandates, burdensome regulations, unfair subsidies, and all other artificial constraints and tax barriers that limit the free market’s ability to deliver efficient, safe and economical energy supplies.

I think we all agree that there isn’t one energy source that we can rely on to make us energy independent. We need to allow for increased development and use of nuclear power, an increase of natural gas exploration and production, and yes, an increase in domestic oil and oil shale exploration and production. We also need government to simply stop interfering in the marketplace to allow other renewable energies such as hydrogen, wind-generated power, new biodiesel technologies and the enormous potential of solar energy to compete on a level playing field.

I’ve outlined steps below that should be implemented to ensure we can meet our energy needs.

1. Increase Oil Exploration and Production:

Since 1994, the United States has been importing more oil than we produce domestically. Regulations and limits on production have put us in the current position with respect to rising fuel and food prices. Without commonsense solutions to the use of our domestic resources, we’ll continue on the path to unaffordable gas prices and exorbitant food prices. I propose to bring ANWR , Oil Shale and OCS deepwater exploration online immediately.

2. Increase and Improve Refining Capacity:

It’s been over thirty years since a refinery has been built in the United States. With refinery infrastructure showing its age and refining capacity already stretched to its limits, global market fluctuations make it increasingly difficult for current refineries to respond to market changes. New, cleaner technologies in the refining process must be taken advantage of and new refineries must be brought online to keep pace with demand.

3. Pursue Clean Coal Technology:

Today, coal provides most of our nation’s electricity. Our coal reserves are vast. As Senator John McCain has said, “Perhaps no advancement in energy technology could mean more to America than the clean burning of coal and the capture and storage of carbon-emissions.”    An exciting new technology is beginning to be used to produce jet fuel from coal.

4. Step Up the Permitting of Nuclear Power Plants:

Nuclear power is essential to clean, efficient and affordable energy. It generates no air pollution, water pollution, or ground pollution.

The U.S. currently gets 50 percent of its electricity from coal and 20 percent from nuclear. Reversing these percentages through increased use of nuclear power should unite both climate change advocates and anyone who wants American energy independence. The resulting expanded electrical grid could also meet the needs of large numbers of electric or hydrogen cars.
The rest of the world is quickly heading toward nuclear power. France is not only meeting the majority of its electricity demand through its nuclear program, but they are also selling their technology to the developing world. The United States once dominated this technology. We are now being left behind. The main culprit is public fear. It is time to allay those fears and avail ourselves of this clean, safe and virtually-unlimited source of energy.

5. Provide Across-the-board Carbon-Efficient Energy Development Tax Credits:

Companies who are willing to use their own capital to develop carbon- efficient energy sources should be rewarded with Carbon-Efficient Energy Development Tax Credits. Capital spent on testing, exploration and production of new carbon-efficient energy sources would be exempt from federal taxes for a minimum of 10 years.  In this way, government will not pick winners and losers among alternative energy sources, but rather allow all potential solutions including wind, solar, hydrogen, bio-diesel, cellulosic ethanol, etc. to advance equally.

The United States of America is the greatest nation in the history of the world. Surely we can make ourselves energy independent and create a cleaner environment at the same time. First, Congress needs to reverse the failed policies of the past and get government out of the way of the innovative power of the American entrepreneur.

Abolish the Income Tax

Our Founders often quoted from Blackstone’s commentaries when they argued against the income tax and made it unconstitutional. “A power over a man’s resources is a power over his will."

This debate is not just about the rate of the tax or the size of the deficit. It is about the right of a free people to own the fruit of our own labor. Let’s not settle for one more tweak, one less schedule, one different loophole, any longer. It is time for the citizens of our great country to insist on a return to a true understanding of liberty and replace the current system with what our Founders intended. Let’s institute a fair tax that replaces the income tax with a tax based upon our purchases in the marketplace.

We can debate the details, but this principle should prevail.

Those of us in this movement believe the best about America, and the best about Americans. We believe our friends and neighbors know better than government how to control their own resources. We believe Americans still have the character to be free. It’s time the rest of the politicians in Washington felt the same.

Kill the Death Tax!

The phase-out of the death tax will expire at the end of 2010. This is a looming crisis for small business owners, farmers, ranchers and others who heirs may be forced to sell the farm or business in order to pay up to a 55 percent federal estate tax. Imagine the unfairness of one person who dies on December 31 and who is able to pass the family business on to the children and grandchildren intact vs. another person who dies a day later and the children get hit with a bill from the federal government that is so big, the business must be sold to cover it.

Besides, the small business owner has already been taxed on the money when they earned it. The death tax is double taxation. End the death tax permanently.

Reform the Alternative Minimum Tax

There is a tax increase looming for millions of taxpayers, hidden in the Alternative Minimum Tax that was not indexed for inflation when it was passed in 1969. Large families will be especially hard hit. It must be reformed, and soon, otherwise it will wipe out all of the tax relief that we have achieved in recent years.

End the Marriage Penalty

In 2006, I was one of the leaders of the team that successfully ended the marriage penalties that were remaining in Arizona tax laws. The current federal income tax code imposes a penalty on working married couples. In 2001, Congress passed marriage tax penalty relief phased in over several years. All of the changes are set to expire at the end of 2010 hitting married couples with a marriage penalty tax increase in 2011. It is imperative that Congress pass legislation to make this phase-out of the marriage penalty permanent.