Will Melancon Back National Energy Tax?

April 7, 2009

Will Melancon Back National Energy Tax?
After Admitting Congress Shouldn’t Burden Industry with More Taxes, Will Melancon Side with Party or Louisiana Families?

Washington- After passing the federal budget last week, Democrats in Washington are paving the way to implement a devastating national energy tax that will hit everyone who flips on a light switch.  This “Cap-and-Tax” proposal would be so crippling to the American economy that many Democrat lawmakers in Washington are even running from this idea, but Louisiana Congressman Charlie Melancon has yet to take a position.

A recent op-ed in the Lafayette Daily Advertiser laid out the devastating economic impact that this national energy tax would have on Louisiana:

“Where is this $650 billion or more [energy tax] going to come from?  The answer, Louisiana and other industry heavy states: Louisiana ranks sixth in per capita CO2 emissions, California 47th.  We have 19 refineries and dozens of chemical plants throughout Louisiana; they will be hit the hardest.  It appears that the spread-the-wealth program not only applies to income levels of families, but also where you live.” (Don Briggs op-ed, “Louisiana Oil and Gas Association: The cap-and-trade tax and why we should care,” Lafayette (LA) Daily Advertiser, 3/15/09)

An analysis on a similar bill introduced last year revealed that under such a Cap and Trade program Louisiana families and workers would suffer greatly:

•    Louisiana could lose as many as 61,000 jobs;
•    Louisianans’ disposable household income could drop by as much as $6,000 per year;
•    The price of gasoline could skyrocket by as much as 147% in Louisiana;
•    Electricity costs and natural gas prices could spike by as much as 145%;
•    Louisiana’s gross state product could plunge by more than $9 billion;
•    Low-income Louisianans would be especially affected, spending nearly 27% of income on energy costs.

(“Louisiana: Economic Impact on the State from Lieberman-Warner,” National Association of Manufacturers, http://www.accf.org/media/docs/nam/Louisiana.pdf)

After Charlie Melancon admitted today that Congress should not burden oil and gas industries with more taxes, will he still support a national energy tax?

“We don’t need to pile some more taxes or burden on that industry, when what we need them to do is to – not only produce energy, but produce jobs.” (Radio Interview, KPEL, 4/7/09)

“Charlie Melancon has run out of excuses when it comes to his party’s ardent support for this national energy tax.  It’s clear that President Obama and Nancy Pelosi are committed to passing this job-killing proposal, but Melancon’s silence is deafening,” said NRCC Communications Director Ken Spain.  “As thousands in Louisiana struggle amid a fragile economy, will Melancon stand up for middle-class families in his state or once again be complicit with the tax-and-spend agenda of Washington Democrats?”