Congressional Tax Proposal is Bad for America
UPDATE: U.S. HOUSE AND SENATE APPROVE BILL CONTAINING TAX INCREASES ON INDUSTRY
The Obama Administration has proposed, and the U.S. House and Senate have approved, significant tax increases on America’s oil and natural gas industry. These unprecedented taxes would have devastating effects on the industry and an already struggling American economy. This legislation is now in the hands of the tax-writing committees.
Increasing taxes on the oil and natural gas industry will:
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Stifle economic recovery
Raising taxes in a time of economic decline is a recipe for disaster. Hoover did it in the 1930s, Carter did it in the 1970s and Obama wants to do it now. New taxes could hurt workers by extending the recession or depressing job creation just as an economic recovery starts to bloom.
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Cost thousands of American jobs each year
According to a preliminary estimate based on Center for American Progress data, each year thousands of oil and natural gas jobs would be destroyed by the Administration’s new taxes.
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Increase consumer prices for fuel and other products
Not only could consumers see the direct impact of higher fuel prices, but costs could go up for other petroleum-based consumer goods such as items made from plastic or fibers. In addition, products or services that rely on fuel to transport them to consumers, like most grocery items, could see price increases.
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Reduce investment in new U.S.-based energy supplies
Higher taxes would undermine the one industry that is best positioned to produce more domestic energy resources and develop large-scale alternative forms of energy. At a time when other countries are providing incentives to develop their own energy resources, the U.S. is the only country actively discouraging it. When the economy recovers, America will need all the energy we can produce.
A recent poll found that 61 percent of Americans who voted in the 2008 presidential election support access to offshore oil and natural gas resources. New taxes will make it more expensive for oil and natural gas companies to expand or initiate new exploration and development programs.
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Reduce local, state and federal revenue
A recent ICF International study found that developing the vast oil and natural gas resources on federal lands that had been kept off-limits by Congress for decades could generate $1.7 trillion in government revenue. Higher taxes will make such development less attractive, lowering potential revenue to the government.
The hundreds of thousands of Americans employed by the energy industry – including the tens of thousands employed by ConocoPhillips – work hard every day to provide this country with the energy it needs. These tax proposals would seriously undermine their efforts and the development of America’s domestic energy supply.
Learn more about specific tax proposals and their implications with our Energy Answers fact sheet (202KB .PDF) and API's Tax Talking Points (768MB .PDF).
Act Now. Contact your elected officials in Washington today – see the options at right.
Be Heard. Tell them to STOP tax increases on America’s oil and natural gas industry.