Like a mid-winter thaw, politicians with plans for boosting revenue by raising taxes on energy always seem to surface around now. During the dead of winter, when homeowners bemoan the escalating cost of heating oil, tax-hungry legislators always seem to haul out the anti-energy, pro-tax language.

They will tell you that energy companies are making billions on the backs of poor Americans, that higher oil and gas prices are necessary; and that tax breaks for exploration should be eliminated. Luckily, many of these same voices were drowned out in Congress late last year when the leadership failed to push through billions in new energy taxes – largely because enough Democrats recognized the policy was flawed and voted against party lines. Now with the winter thaw, and in the heat of the presidential race, talk of taxes is again surfacing.

Forget for a moment that energy is among the most taxed of all economic sectors – more than banking, pharmaceuticals or real estate. Energy is perhaps the most critical component of the economy because no matter who you are, where you work, or what you drive you can’t live without it. Energy is a commodity - like timber - and that means its price is not set by the energy companies or by the politicians in Washington but instead is set by a global market which is keenly focused on supply and demand. These days, demand is outpacing supply - by a lot. Even with the development of alternative fuels, we need more oil and natural gas than ever before. When politicians talk about increasing taxes on energy companies or eliminating the tax breaks they get for exploring new oil fields what they are really talking about is raising the price of energy for all Americans.

New Hampshire has a long proud heritage as an anti-tax state. We shun the idea that taxes are the answer to curing economic woes. Perhaps that is why we have been able to withstand the recessions which have crippled other parts of the nation. Even still, higher energy prices resulting from higher corporate energy taxes would hit us hard. Consider the distance many of us commute from home to work and our day to day travel around town. If the government raises taxes on energy, those costs are passed down to the consumer resulting in higher prices for gasoline and for virtually all consumer goods. In essence, higher taxes on energy companies result in a tax increase for every single one of us.

Eliminating tax breaks for exploration would reduce the risks oil and gas companies take searching for new supplies of energy. Every year, energy companies spend countless dollars to develop new oil fields. Not all of those fields materialize. What reduces their liability is the government’s tax breaks. Without them, fewer drilling projects will be undertaken and ultimately more oil and gas will need to be imported from overseas. Consumers will be the big losers because with less supply coming from American oil deposits high demand will force prices to increase. And, so it goes.

Any benefits to the federal budget as a result of a new tax on energy will be overshadowed by the financial pressure higher energy prices will have on consumers. There is no faster road to recession than increasing the cost of energy – especially now, as demand from countries like China and India is putting greater pressure on global energy markets.

The mid-winter thaw is always a welcome respite from the cold, dark days we expect at this time of year. Too bad the politicians can’t leave well enough alone and let us turn our thoughts to spring days and outdoor activities – instead of making us worry about $5 and $6 gallons of gasoline and all the misery that would bring.