Wednesday, June 08, 2011

St. Rep. Thompson Announces Passage of Resolution Urging Withdrawal of Job-killing Federal Energy Tax

COLUMBUS—State Representative Andy Thompson (R-Marietta) today announced the Ohio House’s passage of House Concurrent Resolution 12, which urges President Barack Obama and his administration to reconsider proposals to increase taxes on producers of coal, natural gas and petroleum, and instead commit to adopting policies that encourage domestic production of these important resources.

In its latest budget proposal, the Obama administration proposed increasing taxes on producers of coal, natural gas, and petroleum. The proposed tax would hinder economic growth, cost consumers billions of additional dollars in heating fuel costs, result in increased prices for a myriad of other products, and hinder the domestic production of fossil fuels—thus increasing reliance on foreign imports. The federal proposals may also lead to a major loss of jobs in this important sector of the American economy and unfairly target the small independent oil and gas industry.

“The burden of additional costs on consumers will fall on Ohioans at a time when they are least able to afford it,” Thompson said. “The United States has abundant energy reserves that should safely be explored so we can lower the cost of energy and reduce our reliance on foreign fuel. HCR 12 will serve as a message to encourage the President not to tax Ohioans and our companies while we, like all Americans, are trying to regain our economic footing.”

Coal, natural gas and petroleum comprise nearly 70 percent of the energy used to produce electricity in the United States. Additionally, fuel oil derived from petroleum and natural gas is the primary heating fuels used in many parts of the nation, including Ohio.

This legislation has the support of the Ohio Petroleum Council, the Ohio Oil & Gas Association, the Ohio Coal Association and the Ohio Chamber of Commerce.

HCR 12 passed with bipartisan support and will move to the Senate for further consideration.