SE North Carolina News

Washington, D.C. — Senator Ted Budd (R-NC) has joined a letter to U.S. Treasury Secretary Janet Yellen expressing serious concern over the $110 billion in target tax increases on the production of oil, gas, and coal in the Biden administration’s General Explanations of the Administration’s Fiscal Year 2025 Revenue Proposals (Green Book).

The letter, co-signed by Senator Budd and 24 other Senators, expresses grave concern over the administration's approach towards American energy production. It highlights the impact of the proposed tax increases on working families, small businesses, and the nation's energy security.

According to the letter, the administration's focus on increasing energy taxes instead of promoting U.S. energy production is seen as detrimental to the industry. The letter criticizes the administration for targeting traditional energy producers with significant tax hikes, amounting to over $110 billion.

The administration justifies its stance by stating that current tax preferences in the fossil fuel sector distort markets and hinder the transition to a clean energy economy. However, the letter signed by Senator Budd and his colleagues argues that these proposals fail to consider the existing tax burdens on the industry and lack policy neutrality.

Moreover, the letter points out specific provisions in the Green Book that would impact energy producers, such as the repeal of cost recovery mechanisms like Intangible Drilling Costs and Percentage Depletion. These mechanisms are essential for maintaining production and supporting independent producers, farmers, and ranchers in the energy sector.

In conclusion, the letter emphasizes the importance of supporting American energy production and innovation to maintain energy security at home and abroad. It warns that the proposed tax increases, combined with regulatory burdens, could threaten access to affordable energy for American families and weaken the nation's position in global energy markets.