(Washington, D.C.) – U.S. Sen. David Vitter today joined five Gulf Coast senators in sending a letter to the Senate “Gang of 16” urging that they withdraw plans for a severance tax on oil production in the Gulf of Mexico. 

        “The severance tax proposed by this proposal will limit production in the Gulf of Mexico, stifling supplies and increasing energy and gasoline prices,” said Vitter.  “That is just something that American families don’t need right now.”

        Although no official bill has been filed, the latest draft of the “Gang of 16” plan would allow for some additional drilling on the Outer Continental Shelf in the Gulf of Mexico but would also impose higher taxes on oil production.  Severance taxes are those imposed by a state on entities involved in the extraction of natural resources, including oil and natural gas, which are intended for consumption in other states.

        “This current planned bill will only hinder production in an area that not only provides a significant amount of our nation’s energy but could also supply even more if we could only agree on a path toward responsible energy exploration,” said Vitter.  “The best way to decrease the cost of fuel is to increase production of our own domestic supply and continue to focus on lowering our overall demand.  Economics 101 states that imposing punitive taxes on businesses that produce our nation’s oil will only increase the burden on the consumer.”

        The letter expresses concern that the proposal targets the Gulf states and disregards the historical insight the senators representing these states possess regarding domestic energy production. 

        Vitter was joined on the letter by Sens. Cornyn (R-TX), Cochran (R-MS), Shelby (R-AL), Sessions (R-AL), Wicker (R-MS) and Hutchison (R-TX).