New Taxes on Oil Companies is Bad Policy
Ahead of Wednesday’s vote in the Senate on S. 940, Senator Menendez’s bill to impose punitive tax hikes on the oil and gas industry, the Chamber sent a key vote letter to members of Congress opposing the legislation.
- Levying new taxes and fees on America’s oil and gas industry would increase U.S. dependence on foreign oil, increase costs to consumers, jeopardize U.S. jobs, and erode economic competitiveness.
- Taxes, new fees, and other attempts to restrict domestic energy production have been proven to increase reliance on imported energy and increase costs for consumers. The lack of more robust domestic energy production is a failure of Congress and the Administration. Legislation intended to punish energy companies for the government’s failure is misguided, unwarranted, and ultimately counterproductive.
- The proposed modification of the foreign tax credit rules for U.S. oil and gas companies would place domestic firms at a competitive disadvantage to foreign oil and gas manufacturers.
- While the Chamber believes that deficit reduction is a laudable goal, this goal should be achieved through spending cuts that address the root cause of the deficit and not through punitive taxation. Bad tax policy and bad energy policy are not antidotes for the poison of the federal deficit.
- The Chamber strongly opposes the targeting of specific industries to offset or pay for Congress’ inability to affect sound fiscal policy that achieves meaningful deficit reduction, and urges Congress to address fundamental comprehensive energy policy.
To view the entire letter, click here.