Dealing with the Sequester 2.0: How to Make a Bad Situation Worse

By January 31, 2013Energy, Taxation

Manufacturers are very concerned about the impact on the economy and jobs of the across-the board cuts in federal spending now set to kick-in on March 1st. But replacing these job-killing cuts with job-killing tax increases on the energy industry, as suggested by the White House and Senate Majority Leader Harry Reid (D-NV), is not an acceptable solution to the problem.

The manufacturing sector is the largest energy consumer in the United States, using one-third of the nation’s energy. Imposing new energy taxes will result in higher energy costs for manufacturers, driving up the cost of domestic production. And it doesn’t stop there. Raising taxes on domestic energy producing companies will make it more expensive to produce everything in this country. Increased fuel costs will affect all Americans, both manufacturers and consumers, by increasing the cost of products made and the cost of products purchased. As with the sequester, jobs will be lost.

Millions of current jobs will be at risk and future job creation thwarted if new energy taxes were enacted. Given our nation’s persistent, high unemployment rate and anemic economic growth, both the sequester and new energy taxes are bad ideas. It’s time to find new ideas to jumpstart our economy and stop trying to pick winners and losers based on a partisan agenda.

Dorothy Coleman

Dorothy Coleman

Dorothy Coleman is vice president of tax and domestic economic policy at the National Association of Manufacturers (NAM). Ms. Coleman is responsible for providing NAM members with important information related to tax issues and representing the NAM’s position to Congress, the Administration and the media. An NAM spokesperson for tax policy issues, she coordinates membership coalitions; prepares testimony, reports and analyses; and responds to media inquiries. Before taking over as vice president of the tax policy department, she served as director of tax policy from April 1998 to April 2000.
Dorothy Coleman

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  • Theresa Brady says:

    A carbon tax, is a good idea. It only taxes fossil fuels. It encourages green energy. Shift manufacturing production to green energy. Some do in my state. People like it. It is more stable. Once the solar and wind are installed, a regular reliable source of energy for 20 years. There should also be a tax on nuclear energy,since there is so much hazard to the public.

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