Fill ‘Er Up with Higher Taxes….Yeah, Top it Off

By December 12, 2007Energy, Taxation

From CQ Politics:

Senate leaders Wednesday unveiled a reworked $22 billion tax package as part of a comprehensive energy bill that they say will pass this week.

However, the tax provision still banks on at least $12.7 billion in offsets from rolling back tax breaks on the oil and gas industry, a strategy that has prompted a White House veto threat because it targets a specific industry.

Majority Leader Harry Reid , D-Nev., is expected to seek to limit debate on the bill, setting up a Thursday vote.

The bill has some merit. For example, its energy efficiency provisions are a positive contribution toward the goal of diversifying the U.S. energy mix.

Nevertheless, the tax language would prevent companies in one industry sector from taking advantage of the Section 199 deduction available to all other domestic manufacturers. Sets quite a precedent, picking out one sector for punishment; passage would encourage Congress to target other industry sectors in the future when additional revenues are needed.

We ask again: How can politicians claim to be lowering the price of gas when they raise taxes on its production?

Leave a Reply