“I thank the Chairmen for holding this hearing. Energy tax policy is an important topic as we work towards a greener America and the creation of jobs in the United States.
“I am pleased that we will start this hearing by reviewing the administration of energy tax credits. In this context, it is important that we discuss the proper funding of the Internal Revenue Service. We need to examine whether the agency has the resources it needs to ensure compliance with these provisions.
“Simply put, agency funding impacts tax administration. The testimony clearly states that the agency has “limited resources" to examine claims after the credits have been paid. I have serious concerns that the Republican plan to cut $600 million from the agency’s budget will further damage its ability to administer energy and tax credits.
“The Republican budget will result in the furlough of over 4,000 employees. This furlough will harm administration and hurt the agency’s ability to detect and fight fraud. The cut also will increase the deficit and widen the tax gap. The agency collects between $4 and $7 for every $1 of funding. The Republican’s attempt to save $600 million actually will cost taxpayers more than $4 billion each year. Any serious discussion of energy policy and tax reform must begin with fully funding the agency.
“Investments in agency funding and tax incentives are critical to energy policy. They result in more energy choices for consumers and increase competition. Most importantly, they create jobs in the United States.
“I thank the witnesses for being here today. I would like to extend a special welcome to the gentleman from the great city of Atlanta, Mr. Byrd.
“Thank you."
