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Tuesday, February 15, 2011
5:35 PM EST
Billy Gribbin

ATR Energy Tax Hike Series: Obama 2012 Budget Analysis

Download the full paper here

Obama Energy Tax Proposals:
The President’s FY 2012 budget contains hundreds of billions of dollars worth of new taxes on energy production and consumption. These taxes will result in higher prices at the pump, increased utility bills and fewer American energy jobs as companies flee the U.S. to avoid these industry-crippling taxes. Click on each subject for a complete breakdown of some of the energy taxes Obama supports:

Tax Increase FY 2012 FY 2012-2021 Industry Impact
Increase Amortization Period $59 million $1.4 billion $1.4 billion
Dual Capacity $535 million $10.8 billion $10.8 billion

Repeal Percentage Depletion:

          ~Oil and Natural Gas

          ~Hard Minerals

 

$607 million

$78 million

 

$11.2 billion

$1.35 billion

 

$11 billion

$1.35 billion

Repeal Intangible Drilling

and Expensing of Exploration Costs:

           ~Oil and Natural Gas

           ~Hard Minerals

 

 

$1.9 billion

$78 million

 

 

$12.4 billion

$1.35 billion

 

 

$12.4 billion

$1.35 billion

IRS Section. 199 Repeal

           ~Oil and Natural Gas

           ~Hard Minerals

 

$902 million

$20 million

 

$18 billion

$410 million

 

$18 billion

$410 million
Repeal Tertiary Injectants $6 million $92 million $92 million
Superfund $1.4 billion $20.8 million $10 billion
LIFO $2.6 billion* $52.9 billion $22.5 billion
Passive Loss $23 million $203 million $200 million
Oil Spill Liability Trust Fund $35 million $451 million $451 million          
(*) indicates data for FY 2013 where 2012 calculations are not applicable.

Include repeal of the Marginal Well and Enhanced Oil Recovery tax credits, and you have an energy tax increase of over $90,000,000,000 by 2021!

ATR Recommendations:
Congress should fight these new tax increases, and move to rapidly increase access to domestic energy resources in the Eastern Gulf of Mexico, part of the Rocky Mountains, the Atlantic and Pacific Outer Continental Shelves, and ANWR. Among the results of increased access would be:

• The immediate creation of 50,000 direct and 120,000 indirect jobs by 2014
• The addition of 150,000 direct and 380,000 indirect jobs by 2025
• An additional 4 million barrels of oil equivalents per day brought online by 2025
• An increase in government revenues of $20 billion by 2020, and $150 billion by 2025

Posted by Billy Gribbin on Tuesday, February 15, 2011 5:35 PM EST
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