API President and CEO Jack Gerard has said that The president’s FY 2015 budget proposal contains no new ideas in the oil and natural gas sector, recycling earlier calls for tax hikes that would hurt job creation, energy production, and government revenue.
‘The president should be concerned about the deficit of new ideas in his budget. Raising taxes on US oil and natural gas companies would undermine the investments in energy production that are driving job creation and moving us closer to energy security than we have been in decades,’ said Gerard.
Policies that promote domestic US development of oil and natural gas resources, including allowing more production on federal lands and waters, could create more than 1 million new jobs and raise US$ 127 billion in government revenue in under a decade, a study by Wood Mackenzie found.
Gerard continued, ‘the average oil and natural gas job pays about seven times the federal minimum wage, and the natural gas renaissance has led to lower CO2 levels. Higher energy taxes would set back the president’s won goal of addressing income inequality and undermine his ability to achieve his climate goals.’
The US oil and natural gas industry already pays the highest effective tax rate, 44% compared to 30.2% for the rest of the S&P industrials. Higher taxes on oil and natural gas would discourage investment in America’s energy production, leaving the government with less revenue and reduce job creation, according to the study also.
‘America’s energy and manufacturing renaissance is creating jobs all over the country and raising billions in revenue for the government,’ said Gerard. ‘The president’s tax hikes on oil and natural gas could raise consumer costs, harm needed job creation and lesson government revenue.’
Adapted from a press release by Claira Lloyd.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/05032014/api_on_us_fy_2015_budget237/