President Obama called for higher taxes on the oil and natural gas industry on Feb. 2 for the sixth year in a row. His $95 billion energy tax hike would thwart the very goals expressed in his State of the Union address, said API President and CEO Jack Gerard.
“Historically, raising taxes on energy raises costs for consumers,” said Gerard. “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 economics.
“Opposition to President Obama’s proposals is strong and bipartisan. The president’s annual call to raise taxes on U.S. oil and natural gas development would hurt job creation, infrastructure investment, the federal deficit, seniors on fixed incomes and domestic manufacturing.
“The United States is now the number one producer of oil and natural gas in the world. Tax increases would jeopardize America’s competitiveness as it would discourage future investment. We need policies that will encourage investment, and higher taxes are not the answer.”
Raising 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 more than 1 million new jobs and raise $127 billion in government revenue in under a decade.
