Cap and trade went nowhere. The proposal to allow the Environmental Protection Agency to impose heavy-handed regulations on greenhouse gases was a flop. So what’s Plan C for the Obama administration’s quixotic crusade against affordable American energy? Well, this one’s the most dangerous idea yet.
President Obama’s new proposal, found in his 2011 budget, is to prohibit American oil and natural gas companies from deducting their taxes paid to foreign governments from their U.S. income taxes.
It’s been long established in U.S. tax policy that American companies are allowed a credit for foreign taxes paid against their domestic income taxes. If we didn’t allow that, American companies would pay twice for the same income, essentially pricing them out of most foreign markets. It would put us at an insurmountable competitive disadvantage with companies from other countries.
President Obama’s proposal targets only oil and gas companies, and appears to be a thinly veneered attempt to restrict the energy supply in this country. This will ratchet up costs and force us to turn to foreign energy sources while alternative energy options develop over the next four to five decades.
The economic consequences of this proposal will be severe. Thousands of American jobs will be handed to foreign competitors. The stability of our energy supply will be threatened as we lose a huge share of the global energy market.
If the president’s first two command-and-control approaches to address climate change were bad, this one’s ten times worse. Take action—call Sens. Baucus and Tester and tell them to kill this proposal!