The Hill News

Some voices won’t let go of the thought of imposing punitive new taxes on domestic oil and gas producers. Despite failing to gain enough support for these types of proposals multiple times over the past few years, some in Washington, including the President, simply refuse to give up. Just last month, Senate Democrats had to pull the energy tax provisions from their “jobs” bill because they could not get enough votes among their own members. When a letter was sent to the deficit reduction Super Committee this week advocating the idea, only 37 of the most liberal Democrats in the House and 14 in the Senate were willing to lend their names to it.
 
Probably the most absurd statement made in their letter was that “a slight increase in costs for domestic producers will not increase the price Americans pay for gas.” Of course, a $21 national energy tax that makes domestic production more expensive and puts American oil companies at a disadvantage to foreign! oil companies would hurt consumers.
 
A tax hike of just $5 billion would increase energy production costs, resulting in lower domestic output, increased import levels and yes, more pain for consumers at the gas pump. Ironically, if this Gang That Couldn’t Shoot Straight received just a fourth of the hike they’re demanding, the government would realize a $128 billion loss in revenues, according to a study by energy research and consulting firm Wood Mackenzie. That’s right, their plan would increase the federal deficit.
 

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