The Hill News

Proponents of raising taxes say the action is needed to raise more money to help government pay its bills. But sometimes tax increases actually reduce the amount of money government collects -- negating any justification for their existence.

A perfect example of this is the series of tax increases President Obama wants to impose on companies that produce oil and natural gas and that manufacture fuels and petrochemicals in the United States. These proposed tax increases would worsen our nation's deficit, increase energy costs, wipe out American jobs and increase our reliance of foreign oil. They should be rejected by Congress.

Louisiana State University economist Joseph Mason recently conducted a study for the American Energy Alliance that examined two of the energy tax increases President Obama is seeking -- repealing a domestic manufacturing tax deduction for oil and gas companies and placing restrictions on tax deductions such companies get for taxes ! they pay to foreign nations.

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