As Senate Democrats continue to grope for a coherent energy plan, they have a proposal on the table to whack Americans with a 612 percent tax increase on the cost of a barrel of oil. Just in time for summer driving season.
Buried on page 138 of the most recent tax extenders package is an increase from 8 cents to 49 cents in taxes paid per barrel of oil. With the recent incident in the Gulf leaving energy markets shaken, Democrats are now attempting to ram through a 612 percent tax increase that will negatively affect every American.
“It’s ridiculous that Congress is proposing yet another tax hike. The tax increase will raise the price of gas and everything that needs energy to be produced. The enormous indirect costs will only further hamstring our already fragile economy,” said Grover Norquist, President of Americans for Tax Reform.
As we enter the summer driving season, it is important to remember the summer of 2008, right after the Democrats attempted to push sweeping energy reform, when gas prices hit a record high of $4.11 per gallon.
“President Obama and his left-wing fugleman Harry Reid apparently do not understand basic economics. When the cost of a barrel of oil increases, the cost of a gallon of gas for the single mother in Alabama does too. Energy companies will inevitably raise prices to make up for the loss of revenue, and businesses that rely on traditional energy will pass the burden to consumers to pay for employee salaries and other operating costs,” said Norquist.
Americans for Tax Reform continues to oppose the tax extenders package in the US Senate. Besides the tax increase on a barrel of oil, the bill as a whole is a tax increase – both a marginal rate increase and an income tax increase, thus violating the Taxpayer Protection Pledge.