President Biden’s Build Back Better bill, which the House passed last month but is currently on very rocky ground in the Senate, proposes to raise taxes on foreign earnings of U.S. companies to 15% from 10.5%.

The increase, which would especially impact U.S. energy multinationals, would apply to the Global Intangible Low Tax Income, or GILTI, effective tax rate.

This could cause $10-$20 billion in lost economic activity for American multinational companies and job losses of 500,000 to a million, according to an Ernst+Young study.

Of significance, the proposed changes to the GILTI tax would have a more profound impact to Colorado businesses than many other states. The state of Colorado conforms to the federal code in such a way that changes to the current deduction would be brought in automatically, thereby increasing the amount of GILTI that is taxed from 50% to 75%. 

Those outcomes are the last thing we need right now with inflation at the highest in 31 years and gasoline prices reaching levels not seen in seven years. As Americans face winter heating bill hikes that Uncle Sam estimates could exceed 50%, this action by the Biden administration wants to raise certain taxes that would further aggravate energy costs, hurt U.S. competitiveness and even jeopardize a cleaner climate.

The U.S. is the only country that levies such a tax, and besides raising the rate, the Biden plan also would require companies to calculate their tax on a country-by-country basis instead of in aggregate, which is what is required now. This also could boost companies’ tax bills.

If we support growth at home, we must support growth abroad for American companies. When investment and employment globally by American companies increases, so does domestic investment, exports, research and development and employment.

In addition, higher taxes would almost certainly raise energy costs at a time when sky-high gasoline prices at the pump and rising inflation are crimping Americans’ budgets.

The U.S. Energy Information Administration already has projected winter heating bills climbing by as much as 54% from last winter. That means winter utility bills that will be $13.6 billion higher for Americans than a year ago, according to a CEA analysis.

No wonder consumer confidence, by one respected measure, declined for the fifth month in a row in November, sliding 6.2% from October, as higher energy prices especially worried consumers.

Then there is the risk of unintended environmental consequences, which would hurt America’s ability to help achieve lower emissions worldwide.

Undoubtedly, our energy industry would be forced to cede ground in the global energy market and, with that, our environmental advantage because of the stringent production standards under which U.S. companies operate. Given that rivals like China, Russia and some OPEC+ nations continue to disregard emissions concerns in their energy production, this would imperil our mission to make energy more accessible affordable, and environmentally sustainable.

Please let your lawmakers know that it is imperative to take a more measured approach that is consistent with the international community. Otherwise, we risk hurting American workers and businesses – and our path toward a cleaner era.

Building back better means ensuring American companies have a strong foundation not just at home, but across the globe where our best-in-the-world environmental standards and business practices can be on display.

?mily Haggstrom is vice president for communications at the Consumer Energy Alliance. The alliance is the leading voice for sensible energy and environmental policies for consumers, bringing together families, farmers, small businesses, distributors, producers and manufacturers to support America‘s environmentally sustainable energy future.