[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H. Con. Res. 112 Referred in Senate (RFS)]

<DOC>
114th CONGRESS
  2d Session
H. CON. RES. 112


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 13, 2016

           Received and referred to the Committee on Finance

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
Expressing the sense of Congress opposing the President's proposed $10 
                      tax on every barrel of oil.

Whereas raising revenue and spending money are powers reserved to Congress by 
        the Constitution;
Whereas according to global economists, the United States oil and gas industry 
        is currently experiencing the worst industry decline since similar 
        commodity price collapses in the 1980s and 1990s forced oil companies to 
        slash payrolls and dividends;
Whereas global oil production exceeds demand by more than one million barrels a 
        day, and Iran has promised to provide an additional 500,000 barrels a 
        day to the world market, now that several sanctions have been lifted 
        after the recent implementation of the Joint Comprehensive Plan of 
        Action;
Whereas the price of a barrel of oil is currently around $30, less than a third 
        of the $90-plus it was selling for 18 months ago; which would mean the 
        President's proposal would be equivalent to a 33.3 percent tax, making 
        the United States Federal excise tax on oil the highest of any domestic 
        product;
Whereas this tax could translate into as much as an additional 25 cents on a 
        gallon of gas, when the Federal tax on gasoline is currently 18.40 cents 
        per gallon;
Whereas the oil and gas industry accounts for significant employment and is an 
        even more significant driver of investment spending and growth along the 
        supply chain, ranging from aggregates to steelmaking and specialist 
        equipment;
Whereas more than 258,000 people employed in oil and gas extraction and support 
        activities globally, including more than 100,000 across the United 
        States, have lost their jobs since October 2014;
Whereas every lost oil and gas job leads to an additional 3.43 jobs cut in other 
        sectors;
Whereas that means the 114,000 job losses in the oil and gas sector wiped out an 
        additional 391,000 jobs in other sectors last year and sliced economic 
        growth to about 2.1 percent from 2.6 percent;
Whereas more layoffs are virtually certain in the months ahead in oil and gas 
        production, as well as along the supply chain and in petroleum-dependent 
        economies, as the continued price slump filters through to even less 
        drilling activity;
Whereas the number of rigs drilling for oil and gas has fallen from over 1,900 
        in October 2014, to 744 at the end of November 2015, and just 619 at the 
        end of January 2016, according to oilfield services firm Baker Hughes;
Whereas manufacturers, for example, announced 37,221 layoffs in the past 12 
        months;
Whereas shipments of steel in the United States--used to make oil and gas 
        pipelines--were down 11.4 percent through the first 11 months of 2015 
        and the industry announced more than 12,000 layoffs during the past 
        year, according to the American Steel and Iron Institute;
Whereas believing that oil companies will pay the fee with no effect on consumer 
        prices requires also believing that the producers won't pass their 
        increased cost on to refiners, who won't in turn pass their costs on to 
        the public; in other words, requires suspending belief in basic 
        economics;
Whereas this tax could also put American oil companies, at a competitive 
        disadvantage with foreign oil companies, as imported oil may not face 
        the same treatment;
Whereas the domestic midstream and downstream stages of oil and gas production 
        will be at a competitive disadvantage to their global competitors due to 
        a $10 higher cost for every barrel of oil;
Whereas in combination with a stronger dollar, slowing growth in international 
        markets, and an overaccumulation of inventories through much of the 
        economy, the oil slump is creating headwinds for manufacturers, freight 
        firms, and the wider economy; and
Whereas the oil and natural gas industry anchors our economy in terms of jobs, 
        economic activity, and even State and local tax revenue in a challenging 
        price environment: Now, therefore, be it
    Resolved by the House of Representatives (the Senate concurring), 
That Congress finds that--
            (1) any new tax placed on the struggling oil and gas 
        industry will further prevent growth and development throughout 
        the sector and encourage additional layoffs; and
            (2) the effect of a $10 tax on each barrel of oil sold in 
        the United States--
                    (A) would raise the price of oil, and by extension 
                gasoline; and
                    (B) would result in a decrease in the consumption 
                of oil.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) a new tax should not be placed on oil, and
            (2) in considering future policy, Congress should carefully 
        review the detrimental impacts of placing any new taxes on any 
        industry that has seen a slash in jobs, revenue, and 
        production.

            Passed the House of Representatives June 10, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.