Senators Say Fewer Jobs, Higher Prices in Store Under President’s Proposed Tax Hikes to Suppress U.S. Energy Production

WASHINGTON, D.C. – U.S. Senator Cindy Hyde-Smith (R-Miss.) joined U.S. Senator John Barrasso and others in bashing President Biden’s budget plan to levy more than $110 billion in taxes on U.S. oil, gas, and coal production.

Hyde-Smith signed a letter led by Barrasso to express serious concern over the $110 billion in targeted tax increases on U.S. energy producers, which are detailed in the Biden administration’s General Explanations of the Administration’s Fiscal Year 2025 Revenue Proposals (Green Book).  The letter, sent to Treasury Secretary Janet Yellen, accuses the administration of “weaponizing the tax code against U.S. energy producers.”

“The broad tax hikes alone will deliver a heavy blow to energy production while simultaneously suppressing growth in numerous sectors of the economy.  But, the administration has decided to go even further by specifically imposing additional burdens on energy producers by removing virtually every longstanding tax provision in the Internal Revenue Code designed to support traditional energy production,” the Senators wrote.

The Senators argue that by weaponizing the tax code to stifle U.S. energy production, American families and small businesses will face higher energy prices and allies will be forced to turn to adversaries for their energy needs.  

“It is alarming that the administration believes utilizing our nation’s abundant natural resources will be detrimental to long-term energy security.  Sadly, the administration would willingly suppress energy production knowing it means fewer jobs and higher prices for the American people.  The Green Book proposals are neither policy neutral nor do they consider the fact that conventional energy production is the highest taxed industry in the world, and pays high rates of tax to the federal government - as well as state and local governments.  This relentless action from the Administration lacks the foresight necessary to realize the detrimental impact that these repeals will have,” the Senators wrote.

Instead of promoting a “whole-of-government assault” on U.S. energy producers, the Senators call on the administration to unleash American energy resources and stop attacking U.S. energy producers who provide reliable and affordable energy for the American people.

“America is fortunate to have abundant energy resources.  Our nation needs to be focused on unleashing American energy and innovation instead of throwing away one of our biggest economic and geopolitical advantages,” the Senators concluded.

Others signing the letter to Yellen include Senate Finance Committee Ranking Member Mike Crapo (R-Idaho), and U.S. Senators John Thune (R-S.D.), John Cornyn (R-Texas), James Lankford (R-Okla.), Thom Tillis (R-N.C.), Steve Daines (R-Mont.), Shelley Moore Capito (R-W.Va.), Marsha Blackburn (R-Tenn.), Jim Risch (R-Idaho), Kevin Cramer (R-N.D.), Ted Budd (R-N.C.), Eric Schmitt (R-Mo.), Rick Scott (R-Fla.), Katie Britt (R-Ala.), Lisa Murkowski (R-Alaska), Bill Cassidy, M.D. (R-La.), Dan Sullivan (R-Alaska), Mike Braun (R-Ind.), Tim Scott (R-S.C.), Cynthia Lummis (R-Wyo.), John Kennedy (R-La.), and John Hoeven (R-N.D.). 

Hyde-Smith serves on the Senate Energy and Natural Resources Committee.

Read the full text of the signed letter here