New windfall taxes are a nightmare for West Virginia

Our economy is still recovering from the disruption of the pandemic, and with inflation and supply chain disruptions added to the mix, local businesses — especially small and mid-sized manufacturers — can’t afford a higher tax burden.

That is why it is so baffling to hear that Congress is still considering raising taxes on manufacturers and energy producers to pay for what’s left over from last year’s “Build Back Better” package.

Our representatives in Congress, particularly Sen. Joe Manchin, were instrumental in ensuring that Washington didn’t impose devastating tax hikes. According to research conducted by economists from Rice University for the National Association of Manufacturers, the proposed tax increases could cost our country up to 1 million jobs in just two years.

But now, some in Congress have turned their focus toward new taxes in a bid to both score political points and find sources of revenue for the specter of Build Back Better. One idea is a so-called “windfall” tax on energy producers that does nothing to bring down prices and instead takes direct aim at a major industry here in West Virginia.

At a time when many West Virginians are feeling the impact of higher prices at the pump, Congress should be pursuing an all-of-the-above strategy for energy security that allows energy producers to make the most of America’s extensive natural resources.

And given the role of energy as a key part of the cost for manufacturers to make and supply household products, these taxes could eventually result in higher input costs that translate into higher prices for consumers.

West Virginians understand perhaps better than most Americans the important role that energy producers play in our economy. These types of unfair taxes that take aim at one of our most important industries do nothing to address the core reasons for inflation, and in fact could make them worse.

Put simply, Congress simply should not raise taxes that will further drive prices up for American families and put manufacturing jobs here in West Virginia at risk.

Manufacturers used the 2017 tax reform to create jobs and invest in our communities — which we have reminded our congressional delegation about time and again.

We need their continued support and commitment to get through ongoing economic headwinds, which is why we’re urging Congress, and most especially Sen. Manchin, to first do no harm when it comes to inflation.

The best way to do that is to resist economically destructive taxes on manufacturers and energy producers in our state.