If you hadn’t noticed, gas prices are slowly creeping up again. What was $1.90 on average last month is now $2.04 this month, according to the Energy Information Administration..
Yet, what is the Obama administration interested in doing with its most recent budget?
How about slapping more than $400 billion in added taxes and fees on the natural gas and oil industry.
“This energy policy, set in place by the Democrat Majority, exemplifies the Democrat motto through and through – Tax and Spend,” said Rep. Bob Goodlatte (R-VA06). “Let’s make no mistake, an increased tax doesn’t just hurt energy companies, it hurts every American- individual, farm, or company- that consumes energy.”
The issue is that when taxes and fees are levied on oil and gas, at least a portion of those taxes and fees are passed onto the consumer. And, during a time of economic recession and increased energy bills – does it make much sense to raise the price further? Estimates are that the energy tax included in the budget will cost households up to $3,128.
“Some are suggesting a cap-and-trade system, a major component of the President’s budget currently before Congress,” said Rep. Randy Forbes (R-VA04). “Unfortunately, this system will result in tax increases for consumers, causing energy bills to skyrocket to up to $3,100 for a family per year at a time when families are already facing strained budgets, and will undermine our competitiveness as a nation.”
Yet Democrats not only are raising taxes in the budget, but stifling any chance of lowering the cost by being lock-step in opposition to exploring our own domestic resources.
A few weeks ago Republican gubernatorial candidate Bob McDonnell proposed opening up Virginia’s coast more than fifty miles off shore to oil and gas – and all his Democratic rivals balked. It is estimated that Virginia’s windfall from off shore drilling would create 2,578 new jobs, induce capital investment of $7.84 billion, yield $644 million in direct and indirect payroll, and result in $271 million in state and local taxes.
“Offshore production of natural gas and oil is not the entire solution to our economic and energy challenges, but it is part of the solution and we need to stop with the delays and start making progress,” said McDonnell. “Along with nuclear, solar, renewable and other sources offshore production helps us move toward energy independence and create jobs to get our economy moving again.”
Yet dissuading energy exploration and extraction is exactly what Democrats intend to do with this budget.
“The taxes contained in the Democrats’ budget resolution will impede new domestic oil and gas production, will discourage investment in new refinery capacity, and will make it more expensive for domestic energy companies to operate in the U.S. than their foreign competitors, making the price at the pump rise even higher,” said Goodlatte.
But while Democrats are trying to make energy more expensive in America with higher taxes and restriction in development and production, Republicans are offering alternative plans based on creativity and innovation that can help jump-start the economy, such as Forbes’ “New Manhattan” project.
“We should approach alternative energy development with a commonsense, incentive-based solution that encourages competition and ingenuity among Americans,” said Forbes. “The New Manhattan Project sets a goal of reaching 50% energy independence in 10 years and 100% in 20 years.”
The lines are pretty obvious in this debate: Democrats continue to look to a centrally-managed, centrally-controlled bureaucratic government for answers – all the while piling-on taxes and restricting the exploration and development of our own resources; while Republicans are looking to reduce energy costs, maximize alternative forms of energy, and encourage and foster the innovation and creativity that comes from the free market.
