Republican senators were able to block a key measure to the Energy bill that would have hit U.S. oil and gas producers with $30 billion in new taxes. The tax hikes would have gone to pay for renewable fuel program, which likely would be expensive and unreliable. Instead, oil suppliers can focus on improving our domestic resources and efficiency while looking for ways to increase our refinery capacity. In the end, American consumers would take the biggest hit from a tax on oil suppliers.
“When you put a tax on a business it gets passed on to consumers,” argued Sen. John Kyl, R-Ariz. “Instead of reducing gasoline prices, this bill is going to add to the cost of gasoline.”
However, Senator Reid gave a ‘NO’ vote as a procedural move, so it is likely this measure will be reconsidered down the road.