Senate Democrats want to do something about about high gas prices. They also want to do something about the deficit. So now they are trying to kill two birds with one stone: they are going to raise taxes on oil companies and use the proceeds to pay down the debt.
There is just one problem: the law of supply and demand. As the Congressional Research Service confirmed this March when they analyzed President Obama’s budget, when you raise taxes on oil companies, oil becomes more expensive to produce, reducing supply. CRS wrote, “[T]he proposals also would make oil and natural gas more expensive for U.S. consumers and likely increase foreign dependence.”
The Senate Democrat bill would only raise taxes by $21 billion over ten years. Obama wanted to raise taxes $40 billion. Either way, unless conservatives will stop them, Americans will be paying billions moe at the pump.