The Tax Man Cometh

Taxes are an inevitable consequence of doing business in America. That's a given. But what happens when they become such a burden that businesses have difficulty investing for the future?

API's President and CEO Jack Gerard answers that question this way: "Raising taxes in a time of economic decline is a recipe for disaster. Hoover did it in the 1930s, Carter did it in the 1970s, and President Obama wants to do it now. Higher taxes could result in less, not more, job security and be felt throughout the entire economy, discouraging business expansion, investment and job creation."

The administration is proposing to raise energy taxes to the tune of more than $400 billion -- that's "billion" with a "b." And the impact won't be pretty. History has shown that new taxes hurt business, threaten jobs and can lead to higher prices to consumers. For more information, check this out: http://energytomorrow.org/Energy_Rhetoric_vs_Reality.aspx

Wonder what higher taxes can do to small businesses, which are considered the engine of our economy? Listen to Ray Keating, chief economist of the Small Business & Entrepreurship Council, below: