The API has said that President Obama’s US$95 billion energy tax hike would thwart the very goals expressed in his State of the Union Address. This is the sixth year in a row that Obama has called for higher taxes on the oil and natural gas industry.
Jack Gerard, API President and CEO commented, “historically, raising taxes on energy raises costs for consumers. America’s oil and natural gas renaissance has done everything on the president’s State of the Union wish list for the middle class. We create well paying jobs, build infrastructure with private dollars, generate billions of dollars in government revenue, support retirees, and help businesses grow with affordable and reliable energy. This industry is the poster child for middle class economies.
“Opposition to President Obama’s proposals is strong and bipartisan. The president’s annual call to raise taxes on US oil and natural gas development would hurt job creation, infrastructure investment, the federal deficit, seniors on fixed incomes and domestic manufacturing.
“The US is now the number one producer of oil and natural gas in the world. Tax increases would jeopardise America’s competitiveness as it would discourage future investment. We need policies that will encourage investment, and higher taxes are not the answer.”
Upping taxes on oil and natural gas would discourage investment in domestic energy development, resulting in decreased revenue for the government and fewer jobs, according to a study by Wood Mackenzie. The same study found that allowing more oil and natural gas development on federal lands and waters could create over 1 million new jobs and raise US$127 billion in government revenue in under a decade.
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/refining/03022015/oil-gas-taxes-2014-api/