With the Deepwater Horizon incident fresh on everyone's minds, taxing America's oil and natural gas industry might elicit a positive reaction. That is exactly what Washington is hoping for. What Washington fails to tell the American people is that these proposed tax increases would threaten thousands of jobs, reduce domestic production and jeopardize energy security.

The proposed tax increases -- more than $100 billion -- are included in the president's budget and in proposals now being considered in Congress. One provision, for example, would do away with the domestic jobs manufacturing deduction for only oil and natural gas activities. This was created in 2004 to encourage all manufacturers and producers to invest, expand and keep current jobs in the United States.

Closer to home, here in Pennsylvania, the potential tax increases could slow the economic growth and decrease the additional revenue we've come to enjoy. The Marcellus Shale -- the massive natural gas formation that, if fully developed, has the potential to be the second largest natural gas field in the world -- has been good for economic development in this regard.

Last year, Pennsylvania's Marcellus Shale operations contributed $3.87 billion to gross state product and supported more than 44,000 jobs. A new study recently released highlights the benefits increased natural gas development could bring the commonwealth -- nearly 212,000 jobs and $18.8 billion by 2020.

However, the proposed tax increases would discourage operators from making investments in potential sites and exploring and producing throughout the Marcellus Shale. These operators could leave our state and develop resources where they have more incentives. Additionally, increased taxes would put 22,319 jobs supported by the oil and natural gas industry at risk.

Last year, the oil and natural gas industry pumped nearly $17.3 billion to all levels of government. For some states, this money was used to help plug budget holes or send students to college. Pennsylvania is one such beneficiary, receiving $750 million in state and local revenue last year. Most states welcome the extra financial support provided by the oil and natural gas industry.

Other unnecessary proposed tax provisions include reinstating the Superfund tax and reducing companies' ability to claim deductions on foreign earned income.

Prior to its expiration, the oil and natural gas industry paid 57 percent of the taxes to clean up Superfund sites, even though our share of the liability was less than 10 percent, according to the Environmental Protection Agency.

The foreign tax credit currently enables all U.S. companies to operate and produce goods and services in other countries without being taxed on profits twice -- once by the host country and once again by the home country. This allows U.S. companies to have a level playing field among foreign competitors, but would change for only the oil and natural gas industry if Congress gets its way.

Increasing taxes on an industry that supports more than 9 million jobs and contributes the second largest source of commercial revenue to the federal government is bad energy and economic policy. Tax increases would discourage investment here and across the country, including offshore, decreasing domestic oil and natural gas production and making us more, not less, dependent on foreign sources of energy.

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