A Resolution Urging Congress to Reject Windfall Profits Taxes on Energy Companies Exposed
The Resolution Urging Congress to Reject Windfall Profits Taxes on Energy Companies was adopted by ALEC's Tax and Fiscal Policy Task Force on July 31, 2008, approved by the ALEC Board of Directors on September 11, 2008. According to ALEC's website, the Resolution was re-approved by the Board of Directors on January 9, 2014, with minor changes in the language. Any language removed from the original version is indicated with strikethrough text and additions are given in bold. (Accessed on 7/9/2015).
ALEC Resolution Text
Summary
The United States cannot afford to impose additional taxes on companies that are responsible for producing energy to American consumers. This resolution encourages Congress to abstain from passing any legislation which would impose “windfall profits” taxes or other discriminatory taxes on energy companies.
WHEREAS, it is the mission of the American Legislative Exchange Council to advance Jeffersonian principles of free markets, limited government, federalism, and individual liberty.
WHEREAS, any additional tax on energy companies will hurt energy exploration and will do nothing but increase the price of gasoline for American consumers.
WHEREAS, our experiment with a windfall profits tax on oil companies in the 1980s proved to be economically devastating. Furthermore, the tax crippled the domestic oil industry and failed to raise even a fraction of the revenue forecasted.
WHEREAS, taking aim at profits sets forth an extremely dangerous precedent of targeting certain industries based on their level of success.
WHEREAS, the United States government already collects billions of dollars from energy companies in the form of corporate income taxes, off-shore royalties, severance taxes, property taxes, excise taxes and payroll taxes.
WHEREAS, recent work from the Tax Foundation has indicated that over the past 30 years, our domestic energy companies have paid nearly three times more in taxes than they have earned in profits.
WHEREAS, the proposed windfall profits tax will increase America’s dependency on foreign oil by imposing additional costs on capital, increasing the cost of domestic oil production.
WHEREAS, it is the American Legislative Exchange Council’s</strike. sound policy that taxes should be as broad-based as possible and no entity should be disproportionately burdened by taxes.
NOW THEREFORE BE IT RESOLVED, that <strike>ALEC [insert state] urges Congress to reject all proposals that impose a “windfall profits tax” or any other discriminatory tax on our country’s energy industry.
BE IT FURTHER RESOLVED, copies of this resolution will be distributed to all Governors and members of the U.S. Senate and the U.S. House of Representatives.
Adopted by the Tax and Fiscal Policy Task Force on July 31, 2008.
Approved by the ALEC Board of Directors on September 11, 2008.
