Democrats Would Destroy the Oil and Gas Industry with a Plan Hidden in $3.5 Trillion Bill
Democrats quietly filled their $3.5 trillion “infrastructure” bill with progressive priorities that will cripple average Americans.
In the latest discovery of a hidden agenda item, groups representing oil and gas companies said the bill would create $6 billion in new taxes on their industry.
Western Energy Alliance, the U.S. Oil and Gas Association, the International Association of Drilling Contractors and the Energy Workforce & Technology Council wrote a letter to the House Natural Resources Committee urging it to block the bill, Just the News reported.
The groups argued that the “ill-conceived and punitive fees, royalties, and penalties in an effort to raise just six billion dollars in revenue” would decrease the supply of over 6,000 everyday items. They said the new taxes would disproportionately affect poor, elderly and Native Americans.
Obviously, the taxes would further raise gas prices. According to Wednesday data from AAA, the average price of a gallon of gas in the U.S. has already risen a whopping $1.17 in just one year.
In a 2014 CNN article, economist Stephen Stanley said that every penny of a decrease in the national gas price average equates to about a $1 billion “tax cut” for Americans.
At the time, CNN was attempting to praise the economy under then-President Barack Obama. However, the flip side of that coin means that every penny of an increase in the average gas price equals $1 billion taken out of Americans’ pockets.
By that logic, Americans have lost $117 billion since this time last year — and prices are only going up.
The groups representing the oil and gas industry said crude oil is already averaging $80 a barrel, but the price is expected to rise to at least $100. That will translate to even higher prices at the pump.
If that wasn’t bad enough, tax increases on oil and gas would affect thousands of other products.
“In 2020, of the approximately 6.6 billion barrels of total U.S. petroleum consumption, 44% was finished motor gasoline (including fuel ethanol), 21% was distillate fuel (heating oil and diesel fuel made from crude oil and biomass-based diesel fuel), and 6% was jet fuel,” Just the News reported.
“The remaining 29% came from over 13 other types of petroleum. To put this in perspective, one 42 gallon barrel of oil creates 19.4 gallons of gasoline. The remaining half of the barrel is used to make more than 6,000 products.”
Those products include plastic and synthetic materials used in countless items, including paint, cleaning supplies, medicine, clothes, soap, toys and much more.
The groups said small business owners, who are already struggling from the coronavirus pandemic and subsequent lockdowns, will feel the effects of price increases. They predicted that “rural communities will be decimated,” as will minorities, who will lose “tens of thousands” of jobs.
“Tribal budgets will be eviscerated and the Native American allottees who receive royalty payments will lose those payments each month, trapping them in poverty,” they continued.
Democrats know Americans would not support these tax increases, so they have hidden them in a massive spending plan under the guise of “infrastructure.” They did the same thing with measures like monitoring drivers and spying on Americans via the IRS.
While President Joe Biden claims to care about the middle and lower classes, he continually takes actions that will destroy them. What’s worse, though, is that he doesn’t even have the courage to admit it.
Truth and Accuracy
We are committed to truth and accuracy in all of our journalism. Read our editorial standards.
Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.
