Is It Live, Is It Memorex, or Is It Congress Trying to Raise Energy Taxes?

Subscribe today for Free Enterprise Updates

  • Latest business trends and best practices
  • News about legislation and regulation impacting business
  • Business how-to articles from industry experts
  • Commentary and interviews with newsmakers in business and politics
Mar 29, 2012

Some people in Washington are trapped in the 1980s and treat legislation like it’s a cassette tape. If a bill doesn't go over well the first time, they hit “rewind” and try again.

Today, a bill that would raise taxes on oil and gas companies failed in the Senate again. Senator Robert Menendez’s (D-NJ) bill has been offered once before, not to deal with the problem of gas prices, but to score political points. National Journal’s Amy Harder lays out the politics:

Its failure was always expected, but the debate throughout the week and vote on Thursday gives lawmakers a platform to air grievances about what the other party is doing (or not doing) to alleviate voters from pain at the pump.

Senators tweeted their populist fingers off to create the appearance of helping the middle class.

However, the Congressional Research Service found Americans wouldn’t be helped. Their report said that these tax increases “would make oil and natural gas more expensive for U.S. consumers and likely increase foreign dependence.”

But two proponents of the bill, Senators Menendez and Harry Reid (D-NV), already knew that. Last year, they both acknowledged that these tax hikes wouldn’t lower prices at the pump.

Today, the President hit the rewind button too. In another energy speech, where he talked about high gas prices, President Obama again asked Congress to raise energy taxes.

Thankfully the Menendez bill went down. Maybe now Congress will ditch that cassette tape, pull out their iPods, and enter the 21st Century by putting together an energy playlist that could lower gas prices instead of raise them.