For Immediate Release: Contact: Carol Eberly
February 27, 2008 202-349-5882 or
Washington, D.C.-Americans frustrated with record high home heating bills and increasing costs at the gas pump may be surprised that Congress is trying to make things worse by passing a bill to raise taxes on energy companies.
“As everyone knows, if you want less of something, you should tax it,” said Carrie Lukas, vice president for policy and economics at the Independent Women’s Forum. “The propose tax increases on energy companies will discourage investment in energy infrastructure-that means less energy in the future which means prices will continue to rise.”
“This is one of those rare instances when both business and labor groups agree. They recognize that American needs more energy, not new energy taxes that undermine our economy and destroy jobs,” said Lukas.
While raising taxes on oil and gas companies, policymakers are considering further subsidizing alternative fuels.
“The government should stop attempting to dictate energy use by subsidizing some energy and penalizing others,” said Lukas. “Policymakers should focus on creating a level playing field so that providers can compete and have an incentive to increase the supply of energy regardless of its source.”
“Those who suggest that these are tax loop holes that benefit the oil and gas industry should join the movement to simplify the tax code. It would be a great to scrap our complicated tax code and dramatically lower the corporate tax rate, which is one of the highest in the world,” said Lukas. “Just eliminating a few deductions for the purpose of punishing a specific industry-in this case energy producers-is bad policy and counter-productive.”