Former Obama CEA Chair says Bennet’s plan to hike taxes on large energy companies would increase gas prices

For Immediate Release
March 11, 2022

DENVER, CO – Former Obama Council of Economic Advisors Chair Austan Goolsbee panned Sen. Michael Bennet’s plan to implement punitive “windfall” taxes on big oil companies.

Speaking on CNBC his morning, Goolsbee said Bennet’s plan would likely increase gas prices and backfire politically.

AUSTAN GOOLSBEE: I’m not a big fan, I don’t see what that’s going to solve. I think there’s a high chance … that it would lead oil prices, or gas prices, to go up.

Bennet’s plan would subject major oil companies to a 50 percent tax on the difference between the price of a barrel of oil today and the average price from 2015 to 2019.

As Goolsbee pointed out, punitive taxes on big energy producers would likely lead to higher oil and fuel prices.

The proposal also sends a mixed message to energy producers, especially after Energy Secretary Jennifer Granholm begrudgingly called on oil companies to increase output at an industry function this week.

WTI crude traded up over 3 percent today following the unveiling Bennet and Warren’s oil tax plan.

In addition to Bennet, the “windfall tax” bill rolled out today by Sen. Sheldon Whitehouse is also supported by Senators Bernie Sanders and Elizabeth Warren.

If you plan on covering the bipartisan opposition to Bennet and Warren’s windfall tax bill, please consider the following quote from Compass Colorado.

Bennet’s plan to hike taxes on energy producers is a transparent political ploy,” said Compass Colorado Executive Director Kyle Kohli.

Politicians like Michael Bennet and Bernie Sanders should not be leveraging Putin’s invasion of Ukraine to enact extreme anti-energy policies and drive up costs for consumers.”