Isakson Rejects Legislation to Increase Taxes on Domestic Oil Producers

'Instead of Raising Taxes on U.S. Companies That Provide Jobs, We Should Focus on Developing America's Energy Resources'

May 17, 2011

WASHINGTON – U.S. Senator Johnny Isakson, R-Ga., today voted against Democratic legislation to increase taxes on domestic oil producers, citing that it will do nothing to lower the price of gasoline or lessen our dependence on foreign oil.

The Senate rejected a motion to proceed to the oil tax legislation, S.930, by a vote of 52-48. The motion to proceed required 60 votes to pass.

This legislation would have increased taxes on domestic oil producers by an estimated $15.9 billion over 10 years. The American Petroleum Institute estimates the American oil and gas industry currently pays at least $85 million a day to the federal government in taxes and fees.

“America’s families are struggling as the price at the gas pump continues to rise,” said Isakson. “Instead of raising taxes on U.S. companies that provide jobs, we should focus on developing America’s energy resources to lessen our dependence on foreign oil, stimulate the U.S. economy and bring much-needed relief at the gas pump.”

Last week, in response to the Democrats’ proposal to raise taxes on domestic oil producers, Isakson joined his Republican colleagues in the Senate in cosponsoring S.953, The Offshore Production and Safety Act of 2011, to restore American offshore oil production, improve safety standards to drilling and require bureaucrats to process permits efficiently. The Senate is expected to vote on this measure this week.

In March 2011, following President Obama’s statement that he wants the United States to become one of Brazil’s best oil customers, Isakson sent a letter to President Obama strongly urging him to switch his focus from helping Brazil’s economy to helping America’s economy. Isakson also wrote in the letter that Obama shouldn’t be promising to use American tax dollars to subsidize the development of Brazil’s oil reserves, but should instead be seeking to explore and develop America’s domestic energy resources and to lift moratoria on offshore drilling in the United States.