The NAM is pushing back on a legislative proposal in the U.S. Senate that would raise taxes for energy manufacturers in the United States.
The bill: Coming shortly after new sanctions targeting Russian energy imports, the legislation—called the Big Oil Windfall Profits Tax Act—would levy a new quarterly tax on large oil companies. This proposed excise tax would apply to every barrel of oil produced by large companies and would be equal to 50% of the difference between the current price of oil and the average price per barrel from 2015 to 2019. The revenue from this proposal would fund a new tax credit that would be paid to individuals on a quarterly basis.
The problem: The bill would raise taxes on oil companies and other energy producers that are critical to the needs of the American people at a time when prices are already high—harming their ability to do vital work and raising costs further in an essential industry.
A version of this proposal was signed into law by President Jimmy Carter and was repealed in 1988. Analysts found this tax increased America’s reliance on foreign oil and ultimately did not raise the revenues suggested by its proponents.
Our action: The NAM is aggressively countering the proposal and standing up for America’s vital energy manufacturers. The association remains on guard against industry- and product-specific tax increases, which can inhibit growth, reduce the competitiveness of the targeted sector and distort resource allocation.
Our take: “Our country is sacrificing to save the Ukrainian people, and this is a blatant political ploy to exploit a crisis to enact an extremist agenda,” said NAM President and CEO Jay Timmons. “American policymakers should be singularly focused on saving the people of Ukraine and ending a dictator’s expansionist ambitions, instead of attacking American businesses that are doing all we can to support our government’s efforts to bring about peace.”