Manufacturers: Tax Increases on Energy Companies Hurt Our Economy
05/12/11 - National Association of Manufacturers (NAM) President and CEO Jay Timmons issued the following statement today after the Senate Finance Committee conducted its hearing, “Oil and Gas Tax Incentives and Rising Energy Prices”:“Manufacturing is leading our economic recovery, but ill-conceived policies like tax increases will repress that growth and cost more jobs. The notion of raising taxes on energy companies will not lower gas prices. Tax increases will mean higher costs for good and services and will raise the threat of inflation. They will also put jobs at risk and discourage needed investment in infrastructure and supply, moving us further from our goal of becoming less dependent on energy from foreign sources.
This tax increase would be another strike against U.S. manufacturers who already face a competitive disadvantage compared to those in other countries. Congress should not be in the business of picking winners and losers, nor should it single out a specific industry or companies to pay higher taxes as a result of their success. Targeting the oil and gas industry with punitive, discriminatory taxes is not the way to energy security. The U.S. has one of the highest corporate tax rates in the world, and those in the energy industry pay the highest tax rates among all U.S.-based businesses.
Manufacturers oppose this proposed tax increase and will continue to advocate for a broad-based energy strategy. Achieving energy independence, enhancing our global competitiveness and lowering the cost of energy through increased production is good for manufacturing and the overall U.S. economy.”
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