Tonight, Senate Majority Leader Reid is planning a “test” vote, to gauge the support for on increasing taxes by 20 billion dollars on major oil companies in the United States. While the odds are against get the support of 60 Senators to move forward on this legislation, this is political theater, pure and simple. The purpose of the vote is to demonize successful companies that are working hard every day to increase domestic energy production to help reduce our dependence on foreign oil.
The Senators pushing S. 940 know that increasing taxes on oil companies will not lower gas prices. In fact, members on both sides of the aisle have already acknowledged this. This is simply another ruse for Senator Reid to continue his tax and spend policies that have failed, time and again. And the suggestion that any increased revenue from raising taxes has absolutely no merit and is simply laughable!
This legislation would impose punitive and discriminatory taxes on specific companies within one industry. Congress should not be in the business of picking winners and losers. Who is next, could it be your company – what is your profit margin? If Congress decides to step on this slippery slope, any business should be worried that they will be punished with excessive and targeted taxation as a result of their success.
Unfortunately, the Senate leadership has taken their eye off the ball and decided to focus their energy on impeding job growth and discouraging future investment, when they should be working alongside energy companies that are seeking to produce new domestic energy to reduce our dependence on foreign oil.
The end result of this legislation would be to punish those who have succeeded in the free market and an increase in the cost of energy. This would increase in the cost of doing business, affecting the global competitiveness of manufacturers, and their ability to create jobs. This will ultimately hurt the consumer. S. 940 will only stifle any potential economic growth, which is yet another slippery slope as our nation is in the midst of crawling out of a serious recession.
Dorothy Coleman is vice president for tax and domestic economic policy. National Association of Manufacturers.