- Today, the National Black Chamber of Commerce (NBCC) sent letters to members of the U.S. Senate, voicing its opposition to provisions of S. 3044, the Consumers First Energy Act of 2008. The bill would increase taxes on U.S. energy producers, and the NBCC feels this would be a disastrous policy to adopt at a time when rising energy prices are already straining the U.S. economy.
“Raising taxes on U.S. energy producers essentially amounts to a taxpayer-funded subsidy for their foreign competitors. This is the exact opposite of what Congress should be doing today,” said Harry C. Alford, President/CEO of the NBCC.
The NBCC bases its argument on the simple fact that higher taxes on any industry are a disincentive to investment and increased production. The more domestically produced energy that is made available, the lower prices will be. With fuel prices soaring and no end in sight, the NBCC argues that the U.S. energy industry – including oil companies – must be given every incentive possible to increase their output.
In addition to windfall profits taxes on U.S. energy companies, S.3044 would also take away tax credits American producers now utilize related to their foreign oil and gas activities. This is a mistake, as foreign oil and natural gas play a substantial role in maintaining a sufficient energy supply for American business owners and consumers. U.S. energy companies should be given every incentive to maximize their efforts overseas or access to these vital reserves could be jeopardized.
The NBCC points to recent statistics as proof that high energy prices threaten the success of U.S. businesses. May saw the largest one-month job loss for the U.S. in over 20 years. The NBCC challenges Congress to pursue policies offering low levels of taxation and reduced regulatory encumbrances to help stem rising energy prices and help businesses both small and large survive.
