Administration official: repeal of oil and gas tax breaks won't hurt economy

Obama's budget proposal raises taxes by roughly $40 billion on oil and gas companies by closing several loopholes used by the industry. 

Rep. Dave Camp (R-Mich.) the committee's ranking Republican, said oil and gas companies provide 85 percent of the country's energy demand, when coupled with coal. He warned tax increases on these industries would hamper economic growth.

Ways and Means Chairman Sandy Levin (D-Mich.) countered Camp's argument, saying the U.S. lags behind other countries in promoting green energy technology.

"Our country, in this area, is playing catch up," he said. "We have lacked an energy policy for changing times and changing technologies."

Levin looks to introduce legislation that provides tax incentives for green energy; a cost that would be subject to paygo rules. Camp cautioned lawmakers against closing the oil and gas tax breaks to pay for Levin's initiatives.