Senate Candidate Dykstra: Windfall Profits Tax Would Raise Gas Prices

From today's mailbag:

Sioux Falls, SD - Republican U.S. Senate Candidate Joel Dykstra today said that South Dakota Senator Tim Johnson is taking the wrong approach to protect American consumers and the American economy from rising energy costs.

The Senate struck down legislation on Tuesday co-sponsored by Senator Johnson that would have imposed a windfall profits tax against the five largest U.S. oil companies. Dykstra, who spent 19 years in the international energy development business in the 1980's and 1990's, in both the United States and Europe, said the Johnson approach will fail to solve the problem. "This would result in even higher prices at the pump and discourage American companies from further investment in domestic exploration and production," Dykstra said.

With gasoline prices topping $4 a gallon nationally, Dykstra agrees that consumers are hurting and that something must be done to address rising prices, but he said imposing new taxes is not the right approach. "The strategy of using a windfall profits tax on oil companies was tried by Jimmy Carter in the 1970s and resulted in a loss in domestic production and refining capacity. Since then Congress has failed to take any meaningful steps to solve the problem of America's dependence on foreign supplies and as a result we're paying for it at the gas pump today," he said.

Instead, Dykstra says the U.S. needs a long-term comprehensive energy strategy that focuses on promoting domestic oil production and expanding the refining capacity in the U.S. He said this must be combined with additional renewable energy development and encouragement of new energy technologies.

Dykstra points out that Johnson is canceling out John Thune's common sense votes to address the energy crisis. He said, "Senator Thune is trying to do the right thing by calling for more U.S. exploration and production, but Senator Johnson and his colleagues have voted against him and his good ideas repeatedly."

Dykstra said that Johnson has had many opportunities over his 20 years in Washington to promote American production - but has repeatedly voted to block increased exploration and development efforts.

Dykstra added, "This is another example of Washington business as usual and shows that the majority in Congress prefers to look like they're doing something instead of actually making a difference. Instead of trying to pacify the American people with feel good theatrics we need to take concrete steps to increase America's oil supply from America's reserves."