LETTER FROM WASHINGTON:

On energy, Ensign wants it both ways

He backs renewables development, but not tax on big oil to fund it

Sunday, March 9, 2008 | 3 a.m.

Senator John Ensign

Washington — Listening to conservative Republican Sen. John Ensign’s office make the case that adding to the national debt is better than raising taxes can still be part of a jarring conversation in Washington.

Aren’t Republicans supposed to be the party of fiscal discipline, the party that keeps excessive spending in check?

But the conservative movement has morphed into something old-school deficit hawks would barely recognize. Ross Perot busting out his charts on national TV was so last century.

Ensign showcased the shift last week as he reasserted his position on the renewable energy debate in Congress.

Three times over the past year, Ensign has voted against a proposal to pay for renewable energy development by revoking $17 billion in tax breaks for the big oil and gas companies.

Ensign supports renewable power, but like most Republicans he objects to what essentially amounts to a tax hike on ExxonMobil and the other big-five producers.

The bill lost by just one vote last time, and solar energy lobbyists have Ensign on a list of senators they’re hoping to flip.

But as the proposal returns to the Senate, potentially to face a similar fate, Ensign suggests it’s time for a new strategy.

Ensign believes a renewable energy package should be voted on alone, without the link to the oil tax cuts. Because so many senators support renewable energy, the bill would have many backers, he thinks.

Sure, but how do you pay for it?

And here’s the rub: He wouldn’t.

The senator would rather add to the debt than tap the oil industry or any other source to pay for something he wants.

“It’s the right policy. America needs to move toward renewable energy,” said Ensign spokesman Tory Mazzola, who suggests the cost of the package the senator would introduce could be much smaller than the original. “That’s the right thing to do. Let’s put it to a vote.”

Now the shift that has been under way in American politics comes into full view: Democrats, once the party synonymous with excessive spending, are now trying (with mixed results) to adhere to pay-as-you-go rules. They want each and every new dollar spent to be offset with money from somewhere else — in short, a new tax.

Republicans, once diligent budget watchdogs, can now stomach a little debt if it means avoiding the t-word.

Ensign is setting up a provocative offer that would put Democrats in a bind — either abandon their pay-go rules or vote against a popular renewable energy package.

If Ensign could pull it off, it would be a trifecta: He could support renewable power, avoid new taxes and get in a dig at Democrats for dropping their fiscal discipline.

If not, he remains another Republican senator on the list the renewable energy companies are trying to flip.

Discussion: 3 comments so far…

By LV

3/9/08 at 10:01 a.m.

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Why don't you disclose what ExxonMobil is already paying in taxes to give the whole story.
Here is a quote for you...

While they were recording record profits last year, they were also writing checks to Uncle Sam to the tune of $100.7 billion -- two and a half times what they made in net profit. In fact, previous Tax Foundation research found that from 1977 to 2004, federal and state governments extracted $397 billion by taxing the profits of the largest oil companies and an additional $1.1 trillion in taxes at the pump. In today's dollars, that's $2.2 trillion.
By HelenWeils

3/9/08 at 12:26 p.m.

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Taking the tax credits from the oil companies will only decrease the amount of oil and raise prices. Ensign is right, give renewables a tax break so we can get some relief from both areas.
AND start drilling OUR resources instead of buying from the middle east. DUH! LIBERALS!
By darthbry

3/11/08 at 12:12 p.m.

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Whatever happened to companies or people getting there own investors and taking chances. it is not fair or right to take someones money from them to help pay for other things. Ensign is right on the money with this. Should we explore renewable resources...absolutely.. should the government play Robin Hood, take from the rich and give to those who will be rich...absolutely not. This is where