Exxon knocks Dems’ ‘pandering’ to supercommittee on taxes

“We are writing to urge you to eliminate $21 billion in oil subsidies for the five largest, most profitable private oil companies in the world as part of the Joint Select Committee on Deficit Reduction’s work to lower the federal debt. Everyone needs to do their part to set us on the path toward a balanced budget, even the most wealthy and powerful among us,” states the letter, spearheaded by Sen. Robert Menendez (D-N.J.).

House Democrats are also calling on the bipartisan supercommittee, which is seeking at least $1.2 trillion in deficit-cutting measures, to go after oil industry incentives.

But Cohen, Exxon’s VP of public and government affairs, said that increasing his industry’s taxes won’t have the desired effect.

“While they may provide the illusion of revenue gains, punitive tax increases would actually have the opposite effect in the long term. They have a chilling effect on business growth and investment – not just because they add costs to running a business, but also because of the political message the increase sends. If lawmakers are willing to take punitive measures once, history tells us it will happen again,” he writes, alleging that tax increases would curb jobs and domestic production.