Salt Lake Tribune - Hiking Energy Taxes will Trigger More Spending, Not Deficit Reduction

Op-Ed

By Senator Orrin Hatch

In its May 17 editorial ("Tax Big Oil"), The Salt Lake Tribune makes the fallacious argument that hiking taxes on American energy companies -- as the Obama administration and Senate Democrats are proposing -- will result in the revenue being used to pay down the federal deficit.

If anyone buys that argument, I have some ocean-front property in the Sahara Desert to sell them.

Indeed, Senate Democrats have been clear about their intentions. One colleague said it would "raise a significant amount of extra revenue for important projects." So much for those deficit reduction claims.

The choice here isn't between lower taxes versus extra cash for public safety and children. It is whether or not to use additional tax revenue to continue an unsustainable spending spree at a time when our national debt stands at over $14 trillion.

Utahns get this. They know that government spends too much, not taxes too little. They know tackling our debt crisis can only be accomplished by reforming Medicare, Medicaid and Social Security. And they know the solution to reining in unbridled spending is not to give Washington even more money, which is what my Democratic colleagues are asking for.

And for what?

Hiking taxes on America's energy producers won't lower the price at the pump. Even the Tribune's editorial board should be able to admit as much -- just as Senate Democrats did -- that this is a masquerade to distract attention from the Obama administration's disastrous war on American energy and its failure to lead to bring down our debt.

The ugly truth here is that this administration and congressional Democrats are pushing an energy policy aimed at increasing costs, while at the same time cynically professing to stand should to shoulder with the little guy who can't make ends meet due to those cost increases. As Obama's Energy Secretary, Steven Chu, put it: "Somehow we have to figure out how to boost the price of gasoline to the levels in Europe." In other words, the administration is talking out of both sides of its mouth.

As a senator who is committed to a strong energy foundation for America, President Obama has systematically torn up that foundation, shut down domestic energy production and left our nation vulnerable to foreign nations smart enough to develop their own energy resources.

The facts speak for themselves.

Since taking office, our President has cut new energy leases in the U.S. by more than 60 percent and by more than 80 percent in Utah. As a result, we have fewer American jobs, and less American energy. We also have domestic oil producers deserting federal lands in Utah and other states in droves and seeking less hostile regulatory environments on private land and in foreign countries.

The Democrats' latest proposal is more of the same. It is partisan politics, not sound energy policy.

Utahns and Americans deserve better.

Source