In response to the BP oil spill, Congress is ready to pass another tax hike on oil, one that will quadruple the current tax from 8 cents to 32 cents. This blatant tax on energy will cost American families $11 billion dollars over the next decade! Congressional leaders hope to pass the tax as part of a larger extender package currently making its way through the floor. If this tax is approved, Americans will see the cost of mostly everything rise in response.
President Obama and other democrats want to assure everyone that oil companies will pay for all cleanups and that the people will not be affected. Senator Harry Reid (D-Nev.) even said, "Taxpayers will not pick up the tab," last Monday. This is patently false.
According to the Institute for Energy Research, 15% of what we pay at the gas pump already goes to federal and state government. This figure will rise significantly if the tax is passed because oil companies will raise prices to make up for loss revenue.
The American Enterprise Institute reported that 50% of energy we consume goes to producing essential goods like food and medicine for example. The indirect costs of the tax will further hurt our fragile economy. With oil being the United State’s largest energy source, every one who eats, drives, and uses medication will be hurt by the tax.
ATR continues to monitor the new energy taxes that Democrats want you and your family to pay. To see a complete list, click here.