Tax Hikes On Energy Will Cost Consumers And Increase Dependence On Foreign Oil

Tax Hikes On Energy Will Cost Consumers And Increase Dependence On Foreign Oil

While free-market forces continue to drive down the cost of oil, the new Democrat-led Congress passed a tax hike that increases the cost of domestically produced oil and will inevitably lead to higher gas prices for Americans.

"This has more to do with the hatred of an industry than reducing America's dependence on oil," said Shadegg, a member of the House Energy and Commerce Committee. "Anyone who understands basic economics knows these policies will undoubtedly result in Americans paying higher prices at the pump."

The bill will have the opposite effect of its stated purpose "to reduce our Nation's dependency on foreign oil." It will encourage America to import more foreign oil. According to the Congressional Budget Office, the bill will increase domestic oil costs by over $14 billion.

"For Americans, this bill means higher gas prices and an increased dependence on foreign oil. The price of oil has decreased by 18 percent this year, but by interfering in the market, the federal government just handed the industry an added cost that will be passed on to the consumer," Shadegg said.

http://johnshadegg.house.gov/news/DocumentSingle.aspx?DocumentID=55984