U.S. Congressman Kenny Marchant (TX-24) today released the following statement on being appointed to the influential Ways and Means Subcommittee on Trade:
“I am honored to be assigned to the Ways and Means Trade Subcommittee. Trade is a vital pillar of the Texas economy that supports three million jobs in our state – that’s more than one in five. Texas has also led the nation in exports for the past 12 years running and recently surpassed California as the top high-tech exporter in the country. This has helped create thousands more high-quality, good paying jobs for individuals and families across the state.
“Texas stands as a global trade leader because it has created an environment in which entrepreneurship, innovation, and free markets can thrive. To build on and replicate Texas’ successful model throughout the nation, we have to remove barriers to global commerce and expand access to new markets for American-made products. That’s the type of pro-growth trade agenda I will push for while serving my constituents as a strong, conservative voice on the Trade Subcommittee.”
Congressman Pat Tiberi (OH-12), Chairman of the Ways and Means Subcommittee on Trade, issued the following statement on Marchant’s appointment:
“I welcome my friend, Kenny Marchant, to the Subcommittee on Trade. He’s joining at an exciting time as we are considering trade promotion authority and a number of trade agreements that will help Texas exporters access more than a billion customers across the globe. I look forward to working with Kenny as we consider measures to grow our economy and promote American job creation.”
A description of the jurisdiction and responsibilities of the Ways and Means Subcommittee on Trade can be found here.
U.S. Congressman Kenny Marchant (TX-24) took to the House floor today to rally support for the PTC Elimination Act, legislation he authored with Congressman Mike Pompeo (KS-04) that scales back and repeals the production tax credit. The video and transcript of Marchant's speech can be found below.
“Mr. Speaker, if we’re serious about making the tax code simpler and fairer, then we have to get rid of dead weight hand-outs.
“The PTC Elimination Act, which I have authored with Congressman Pompeo, is a step in that direction. The bill scales back and repeals the Production Tax Credit.
“The PTC was created over 20 years ago to help new forms of energy get on their feet. Today, it’s largely a bloated subsidy for the fully-grown, multibillion-dollar wind industry.
“The mature wind industry shouldn’t be spoon-fed by taxpayers any longer. The PTC needs to end.
“By taking this no longer needed tax credit off the books, the PTC Elimination Act brings fairness to our tax code and enhances competition. That’s the kind of tax simplification we need to reinvigorate the American economy.
“I yield back.”
By Representatives Kenny Marchant (TX-24) and Mike Pompeo (KS-04)
If we want to build a healthier American economy, Congress must stop supporting special interests at the expense of our nation’s economic potential. The Production Tax Credit is a prime example of just how much this self-destructive pattern hurts competition, enables waste and works against the middle class.
Created in 1992 as a temporary provision to encourage investment in nascent forms of energy, the PTC has ballooned from a short term boost to aid innovation into a massive handout for the now multibillion-dollar wind industry. Since the PTC’s inception, wind energy production has surged from 2.8 million to 167.6 million megawatt-hours. That’s an increase of nearly 6,000 percent. Meanwhile, according to the Department of Energy, the cost of a wind turbine has come down by as much as 40 percent since 2008. The wind industry is also producing on a regular basis more energy than the market demands.
Common sense says that a mature and self-sufficient wind industry should no longer be paid for by the American taxpayer. But, common sense is a rare commodity in Washington and it becomes even scarcer when the special interest spigot has been opened.
The wind industry is now larger than ever and so is its influence on Capitol Hill. And with the growth in the wind industry’s lobbying have come perpetual increases in the PTC’s price tag. Last year, the PTC cost taxpayers $1.5 billion. This year it’s projected to cost $2.8 billion. Next year – $3.5 billion.
The PTC also fosters vast market distortion and even puts the environment at risk. The credit pays out per kilowatt-hour (kWh) of energy produced. That means the more energy you generate, the more money you make – regardless of actual demand. Wind power generators looking to milk the credit for all it’s worth are going to generate as much wind energy as possible. They then sell at artificially low prices and sometimes even engage in negative pricing, where they pay grid operators to take the load off their hands.
All of this puts immense pressure on non-PTC eligible clean energy producers, such as natural gas and nuclear, that are forced to compete on the skewed playing field of price-warping subsidies. In fact, all things considered, wind power in 2010 received 18-times the subsidies of nuclear power and 88-times those of natural gas per kWh. Ironically, because of this dynamic, the PTC can foster greater dependence on baseload energy resources that are worse for the environment.
Over its long life, the PTC has expired and been renewed nine times. In theory, the PTC is expired right now. In reality, the PTC is more like a walking-dead credit because it pays eligible claimants for ten years of energy produced. Facilities that met vague “beginning of construction” standards just before the PTC “expired” on Dec. 31, 2014 will receive credits until 2025 or beyond. That assumes special interests do not succeed in getting PTC extended yet again. Just a one-year extension comes with an estimated 10-year cost of $6.4 billion. If made permanent, as President Obama requested in his 2016 budget, taxpayers would be hit with a $35 billion bill to pay.
The wind industry has greatly matured since PTC’s inception, and it should not be spoon-fed by taxpayers any longer. Even the American Wind Energy Association recognized this back in 2012 when it publically supported a future phase-out of the PTC.
By beginning to take on such wasteful, counter-productive subsidies, Congress can show how serious we are in tackling true tax reform. This is why we introduced the PTC Elimination Act. Our legislation significantly scales back PTC handouts to those who remain eligible and completely dismantles the credit’s statutory framework. Similar proposals have been estimated to save taxpayers $9.6 billion.
But the PTC Elimination Act doesn’t stop there. It uses the savings to lower the U.S. corporate tax rate, which, being the highest in the world, is a major handicap for American businesses. Even President Obama agrees that the corporate rate has to come down if we want to keep U.S. businesses competitive.
Let’s put the American people first, bring new life to the U.S. economy, and eliminate the PTC once and for all.
Mr. Marchant, a Republican, represents Texas’ 24th Congressional District in the U.S. House of Representatives and is a member of the House Ways and Means Committee. Mr. Pompeo, a Republican, represents Kansas’ 4th Congressional District in the U.S. House of Representatives and is a member of the House Energy and Commerce Committee.
To view this article on the Daily Signal website, please click here.
U.S. Congressman Kenny Marchant issued the following statement after voting in support of the bicameral FY 2016 Budget Conference Agreement:
“The House and Senate have not agreed to a joint balanced budget in over a decade. I voted to change that today. The bicameral 2016 budget we have delivered achieves balance in under 10 years, repeals Obamacare, and ensures a strong national defense – all without raising taxes. Most importantly, it holds Washington more accountable to taxpayers and provides for a stronger American economy in both the near future and over the long-term. That’s exactly what my constituents sent me here to do.”
According to the non-partisan Congressional Budget Office, the joint 2016 budget will provide for $400 billion in economic growth and 1.2 million new American jobs over the next 10 years.
To read more about the budget, please click here.
U.S. Congressman Kenny Marchant (TX-24) today introduced the Taxpayer Identity Theft Prevention and Enforcement Act (H.R. 2084). The legislation would add certain tax-related crimes to the definition of aggravated identity theft in order to strengthen the deterrent for identity thieves and help prevent future fraud.
“Tax-related identity theft is a growing problem in our nation that has a corrosive effect on its victims and wastes billions of Americans’ tax dollars each year,” said Marchant. “A stronger criminal deterrent is needed to better protect the American people and crack down on fraud. That’s why I have introduced the Taxpayer Identity Theft Prevention and Enforcement Act. By ramping up penalties for tax-related identity theft, this legislation would send a strong message to all scammers and identity thieves: If you prey on honest taxpayers, you will pay a substantial price.”
The Taxpayer Identity Theft Prevention and Enforcement Act would add a number of tax-related offenses to the Aggravated Identity Theft Statute. As stated by the U.S. Treasury Department in its FY2015 Greenbook, this would increase the enforcement tools available to prosecute tax-related identity theft. Additionally, because a conviction for aggravated identity theft adds two years to the sentence imposed for the underlying felony, Treasury believes the potential for increased prison time could also serve as a greater deterrent to identity thieves.
In the 2014 filing season alone, the IRS issued 1.2 million Identity Protection Personal Identification Numbers, which are unique identifiers issued to victims of identity theft for use in filing their tax returns. The number of these identifiers issued in 2014 represents a 55 percent increase over the previous tax filing season.
According to a report published this year by the Government Accountability Office, at least $5.8 billion was paid in fraudulent identity theft refunds during 2013.
The legislative text of the Taxpayer Identity Theft Prevention and Enforcement Act can be found here. To read a one page summary of the bill, please click here.
By Neil McCabe
The green energy barons have had a good run in the Age of Obama, but Capitol Hill conservatives are mounting their first serious challenge to these charlatans in the new Congress with the PTC Elimination Act filed by Rep. Kenny E. Marchant (R.-Texas).
“If we want to build a healthier American economy, Congress must get rid of the dead weight in the tax code that is limiting our nation’s potential. That’s why I have introduced legislation to eliminate the production tax credit,” Marchant said in his April 22 statement.
“Since its creation in 1992, the PTC has ballooned from a temporary boost for energy innovation into a massive special interest handout for the now multibillion-dollar wind industry,” he said. “In fact, because the credit pays claimants for 10 years of energy produced, Americans are currently on the hook for a minimum of $6.4 billion over the next decade.”
The Texas congressman is taking a reasoned approach, trying to wean the wind power off over time.
“The fully mature wind industry should not be spoon-fed by taxpayers any longer. Even the industry’s top lobbying organization admits wind is a mainstream part of the market and has publicly supported a future phase-out of the PTC,” he said.
Others in the wind power trade want their government dole made permanent, like a feudal right. Supporters of wind power feudalism have a friend in President Barack Obama and the Republican leadership, which makes it significant that conservatives are stepping up at all.
The last session of Congress was not a good one for House conservatives. By the time, former majority leader Eric Cantor lost his June primary to a libertarian college professor, the House GOP leadership was already forming a parliamentary coalition with House Democrats to pass the president's agenda.
When time came to pass the Dec. 11 Cromnibus funding bill, rather than deal with conservatives, or wait for the Republicans to take over the Senate in three weeks, Speaker John A. Boehner (R.-Ohio) partnered with House Minority Leader Nancy Pelosi (D.-Calif.) to get the job done.
As 67 Republicans voted against the Cromnibus bill, Pelosi lent Boehner 57 Democrats to pass the bill 219 to 206. Among the goodies the Republican leadership tucked in the Dec. 11 Cromnibus federal funding bill was the extension of the wind production tax credit through the end of calendar year 2014. The credits had expired at the end of 2013.
If the Republicans had not passed the Wind PTC for 2014, the wind power companies would have been exposed to the realities of the free market—a place wind power can never survive.
By Brian Darling
Thursday April 23, 2015
Reps. Kenny Marchant (R-TX) and Mike Pompeo (R-KS) introduced a bill H.R. 1901 to phase out a renewable energy tax credit. Any effort to rid the tax code of cronyism and special interest tax provisions should be applauded.
Cronyism is one of the most disturbing aspects of Washington, DC. We see allegations of Hillary Clinton using her former position as Secretary of State to funnel foreign money into her family foundation.
The Bush Administration bailed out Wall Street when they pushed and passed the Troubled Asset Relief Program (TARP) for friends on Wall Street.
The Obama Administration rewarded donors with billions in energy contracts with the failed solar panel company Solyndra being a classic example of political favors for Obama’s pals.
Repeal of the Renewable Energy Production Tax Credit (PTC) will go a long way to removing one special interest provision in law that is in place to reward green energy proponents.
This bill will forward the ball on tax reform. Rep. Marchant argued “if we want to build a healthier American economy, Congress must get rid of the deadweight in the tax code that is limiting our nation’s potential.” This is a small but important step in ridding the tax code of every single corporate special interest tax provision.
The purpose of taxes should not be to incentivize certain activities or to punish other activities. For example, tax provisions that promote home ownership, like the mortgage interest tax credit, and sin taxes like high cigarette taxes are attempts to engage in social engineering using the tax code. That is wrong.
The Ways and Means Committee, of which U.S. Congressman Kenny Marchant (TX-24) is a member, will hold a hearing focused on legislation that expands American trade while ensuring accountability and transparency.
The hearing is scheduled to take place on Wednesday, April 22, 2015 at 3:00 PM in room 1100 of the Longworth House Office Building.
The Honorable Penny S. Pritzker
Secretary, Department of Commerce
The Honorable Jacob J. Lew
Secretary, Department of the Treasury
The Honorable Thomas J. Vilsack
Secretary, Department of Agriculture
To view the full Ways and Means Committee hearing advisory, please click here.
Today, U.S. Congressmen Kenny Marchant (TX-24) and Mike Pompeo (KS-04) announced the introduction of H.R. 1901, the PTC Elimination Act. The legislation would phase out and repeal the renewable energy production tax credit (PTC).
Congressman Marchant issued the following statement upon introducing the PTC Elimination Act:
“If we want to build a healthier American economy, Congress must get rid of the dead weight in the tax code that is limiting our nation’s potential. That’s why I have introduced legislation to eliminate the production tax credit. Since its creation in 1992, the PTC has ballooned from a temporary boost for energy innovation into a massive special interest handout for the now multibillion-dollar wind industry. Today the wind industry regularly produces more energy than the market demands while hardworking taxpayers shell out billions of dollars each year in PTC support. In fact, because the credit pays claimants for 10 years of energy produced, Americans are currently on the hook for a minimum of $6.4 billion over the next decade.
“The fully mature wind industry should not be spoon-fed by taxpayers any longer. Even the industry’s top lobbying organization admits wind is a mainstream part of the market and has publicly supported a future phase-out of the PTC. The PTC Elimination Act would begin this phase-out immediately by significantly scaling back PTC handouts to those who are eligible. Similar proposals have been estimated to save nearly $10 billion. But the PTC Elimination Act doesn’t stop there. It would also completely dismantle the credit’s statutory framework and use the savings to lower the U.S. corporate tax rate. Even the president agrees that the U.S. corporate tax rate – which is the highest in the industrialized world – must come down to keep American businesses competitive.
“The PTC Elimination Act may only be one piece of the effort to fix our broken tax code, but it puts the American people first and levels the playing field both at home and in the global marketplace. That’s the approach to tax simplification we must use to revitalize the American economy.”
Congressman Pompeo released the following statement regarding the introduction of the PTC Elimination Act:
“Market-distorting, taxpayer-funded energy subsidies must become a thing of the past,” Rep. Pompeo stated. “I believe that the wind energy industry can succeed in the marketplace, but they need to succeed or fail on their own merits without billion dollar handouts from the American taxpayer. This bill stops the government from picking winners and losers in the energy marketplace. I applaud my colleague, Rep. Marchant, for being a leader in this effort and look forward to working with my colleagues in the House to advance this common sense legislation.”
The legislative text of the PTC Elimination Act can be found here. A one page summary of the bill can be found here.
Today, the House passed the Death Tax Repeal Act of 2015 and the State and Local Sales Tax Deduction Fairness Act of 2015. U.S. Congressman Kenny Marchant (TX-24), a cosponsor of both bills, released the following statement:
“The bills I voted to pass today will provide tax relief to families and small businesses across the nation. A repeal of the death tax is estimated to create 139,000 new jobs and bring a much-needed boost to Americans’ paychecks. And making permanent the state and local sales tax deduction, something I’ve long supported, will remove uncertainty and reduce the tax burden for millions of Texas families. As we work to simplify our broken tax code, it only makes sense to repeal the death tax and permanently renew the state and local sales tax deduction.”
Analysis by the Tax Foundation finds that elimination of the Estate Tax, commonly referred to as the “Death Tax,” would create 139,000 jobs and increase wages by 0.7 percent.
1110 Longworth HOB
Washington, DC 20515
As a lifelong conservative, Congressman Kenny Marchant is committed to the values of limited government and fiscal responsibility. Congressman Marchant has a strong record of fighting for lower taxes, eliminating wasteful government spending, bringing accountability and transparency to government, supporting free markets and opposing bailouts, securing our borders and enforcing our immigration laws, and protecting human life in all its stages.
Congressman Marchant was born in Bonham, Texas on February 23, 1951, and was then raised in Carrollton. He earned his bachelor’s degree at Southern Nazarene University.
After graduating from Southern Nazarene University, Congressman Marchant started his own construction and home building business. As a small business owner, he was responsible for creating jobs and meeting a regular payroll, an experience that taught him the importance of entrepreneurship and free enterprise.
Congressman Marchant’s commitment to public service led him to run for the Carrollton City Council, where he was elected and served for four years before being elected mayor of Carrollton. After serving two years as mayor of Carrollton, he was elected to the Texas House of Representatives in 1986.
As a state representative, Congressman Marchant earned a reputation as a strong conservative leader and consensus-builder. In the Texas House, he served as Chairman of the House Committee on Banking and Investments, where he authored legislation strengthening oversight of credit unions, allowing interstate branch banking, enforcing state laws relating to corporate fraud, securing public investments, and allowing access to home equity. In 1999, his colleagues elected him Chair of the House Republican Caucus, a position he held for four years.
During his time in the Texas House, Congressman Marchant was named a “Top Ten Legislator” by Texas Monthly, “Legislator of the Year” by the Texas Municipal League, and “Top Pro-Family Legislator of the Year” by the American Family Association for his consistent record of sponsoring and supporting pro-family legislation.
In 2004, he was elected to represent Texas’ 24th Congressional District. As a member of Congress, he has received numerous honors and awards, including the Center for Security Policy’s “Champion of National Security” Award for his strong record of defending America’s sovereignty, safety, and freedom; the Council for Citizens Against Government Waste’s “Taxpayer Hero” Award for his principled stand against earmarks and excessive government spending; the Club for Growth’s “Defender of Economic Freedom” Award for his consistent record of cutting taxes and reducing the size of government; the American Conservative Union’s “Defender of Liberty” Award for his commitment to conservative principles; and the National Federation of Independent Business’ “Guardian of Small Business” Award for his unwavering support for small business.
Congressman Marchant currently serves on the House Committee on Ways & Means. The Ways and Means Committee is often said to be the most influential committee because of its broad jurisdiction that includes tax policy, Social Security, trade, and Medicare. Congressman Marchant serves as a member of the Subcommittee on Oversight and the Subcommittee on Select Revenue Measures. In the 113th Congress, he was selected by Ways and Means Chairman Dave Camp to Chair the Tax Reform Working Group on Debt, Equity and Capital as part of the Committee’s effort to achieve comprehensive tax reform.
In addition, Congressman Marchant serves as a senior member on the House Committee on Education and Workforce which handles education, health, workforce, and pension policy. This marks a return to a committee he served on in the 109th and 110th Congresses.
Congressman Marchant is also an active member of the Republican Study Committee (RSC). The RSC is a group of House Republicans organized for the purpose of advancing a conservative social and economic agenda in the House of Representatives.
Congressman Marchant and his wife Donna reside in Coppell, Texas. They raised their four children (three sons and one daughter) in the 24th District and are proud grandparents of two granddaughters. He is a graduate of R.L. Turner High School in Carrollton, Texas and holds an honorary doctorate degree from Southern Nazarene University.
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