Todd Hollenbeck

How Cap and Tax Will Hurt New York


Posted by Todd Hollenbeck on Tuesday, September 29th, 2009, 10:15 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in New York. 

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009.
New York:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, New York will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of -$12,676,190,000.
  • Total Personal Income Loss of -$15,911,350,000
  • Non-Farm Job losses of -100,220. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $370.82 per household.
  • Increase in Gas Prices from 2012-2035 of $0.66 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Kristen E. Gillibrand: (202) 224-4451
Senator Charles E. Schumer: (202) 224-6542

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ATR Energy Tax Hike Series Analysis of "Low Carbon Fuel Standard (LCFS)"


Posted by Todd Hollenbeck on Monday, September 28th, 2009, 2:08 PM PERMALINK


The Full Study is avaiable in PDF format here.

 ATR Energy Tax Hike Series 

Low Carbon Fuel Standard (LCFS)
 
Current Law
The Low Carbon Fuel Standard (LCFS) is a limit on the amount of carbon emission allowed from the production and consumption of transportation fuels. There currently is no federal LCFS for the private sector.
 
Obama Proposal
A LCFS was in the original draft of the Waxman-Markey bill, but removed from the version that passed the House. We expect that it will be included in the Senate draft.
 
State note: California currently has an LCFS in place which is intended to reduce carbon content by 10% by 2020 relative to its content in 2010. The reduction will be gradually phased in between 2011 and 2020.
 
ATR Analysis  
The United States’ largest oil supplier, Canada, gets most of its oil from oil sands. These oil sands, like the oil shale in the western US, have a high carbon lifecycle. A LCFS would restrict our access to the Canadian oil sands, which provided about 18 percent of the oil to the US in 2007. The US consumes nearly all of the Canadian oil exports.
 
A LCFS would likely increase biofuel use from corn-ethanol, thus increasing the cost of food. Costs of reaching a 90% LCFS using ethanol would range between $65.5 billion and $760 billion annually; which are $570 and $6520 per year per household. These LCFS would increase subsidies to corn ethanol, costing taxpayers between $1 billion and $17 billion.
 
The 10% reduction in fuel greenhouse gas emissions mandated by a LCFS would increase the cost of ethanol by 46%; from $2.01 per gallon to $2.93 per gallon. The price of gasoline would also increase by $0.61 per gallon.
 
An LCFS will:
  • Increase transportation costs and taxes.
  • Increase food costs around the world because of increased corn-ethanol use.
  • Cut off oil supplies from Canada and the western US, making the US more dependent on less secure sources of energy.

 More information on LCFS is also available at SecureOurFuels.org.

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How Cap and Tax Will Hurt New Mexico


Posted by Todd Hollenbeck on Monday, September 28th, 2009, 9:51 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in New Mexico.

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009.
New Mexico:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, New Mexico will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of -$875,440,000.
  • Total Personal Income Loss of -$1,087,610,000.
  • Non-Farm Job losses of -9,875. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $655.78 per household.
  • Increase in Gas Prices from 2012-2035 of $0.61 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Jeff Bingaman: (202) 224-5521
Senator Tom Udall: (202) 224-6621

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ATR Energy Tax Hike Series Analysis of "Marginal Well Tax Credit Repeal"


Posted by Todd Hollenbeck on Friday, September 25th, 2009, 4:46 PM PERMALINK


ATR Energy Tax Hike Series

Marginal Well Tax Credit Repeal

Current Law
Marginal oil wells are those which produce 15 barrels of heavy oil or less per day or those that produce less than 95 percent water and 25 barrels per day or less. Marginal gas wells are those which produce 90 Mcf or less in one day.

The tax credit is $3/barrel for the first three barrels of daily production and $0.50 per Mcf tax credit for the first 18 Mcf of natural gas. The tax credit phases in and out in equal increments as prices fluctuate. Price triggers are based on average annual wellhead prices.

Obama Proposal
The FY 2010 Administration Budget, approved and submitted by President Obama, calls for a full repeal of the tax credit for oil and gas produced from marginal wells.

ATR Analysis
The benefits of this tax credit to smaller producers cannot be overstated. The Department of Energy estimates that the repeal of this tax credit will cost 140,000 barrels of oil per day or a loss of $10.5 million per day. Despite the smaller production from these wells, there are an estimated 650,000 marginal oil & gas wells in the United States employing millions of people. Raising taxes on energy production will cost jobs and increase the price of energy.

America’s marginal oil wells produce the amount equivalent to 50 percent of the amount imported from Saudi Arabia – increasing this tax credit will hurt domestic supply.

Repealing this tax credit without offsetting tax relief is a net tax increase and a Taxpayer Protection Pledge violation. This tax credit is not a spending program, and eliminating it is not a reduction of government spending—it is a tax increase. 34 Senators and 172 Congressmen have signed the Taxpayer Protection Pledge. In so doing, they promised to their constituents and the American people that they would “oppose any net reduction or elimination of deductions or credits…”

Repealing the Section 199 deduction IS A CORPORATE INCOME TAX INCREASE and is therefore a PLEDGE VIOLATION unless the increase is offset completely with other income tax cuts.

Note: Budget neutrality (which is concerned with deficits) has no role in determining applicability of the Pledge. Rather, tax revenue neutrality (as scored by the JCT) is the only relevant metric for the purposes of the Pledge.

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Study Shows Oil & Natural Gas Industry Brings 9.2 Million Jobs to US Economy


Posted by Todd Hollenbeck on Friday, September 25th, 2009, 2:59 PM PERMALINK


FOR IMMEDIATE RELEASE CONTACT: John Kartch 202-785-0266
25 SEPTEMBER 2009

Study Shows Oil & Natural Gas Industry Brings 9.2 Million Jobs to US Economy
Anti-energy policies from Congress put 7.5 percent of the U.S. GDP at risk.

WASHINGTON, D.C. – A new study by PriceWaterhouseCoopers reports that the US Natural Gas and Oil industry supports:

• 9.2 million American jobs
• Contributes more than $1 trillion to the national economy
• Provides for 7.5 percent of the U.S. GDP

The study also illustrates the effect of oil and natural gas on almost all aspects of the economy. The study states, “The oil and natural gas industry currently supplies more than 60% of the nation’s total energy demands and more that 99% of the fuels used by Americans in their cars and trucks, while 900 of the next 1000 U.S. power plants are projected to use natural gas.”

The 1,427-page Waxman-Markey Cap-and-Trade bill, which passed the house by the slim margin of seven votes, seeks to penalize not just energy producers, but everyone who uses energy as well.

“The significance of this industry to the American economy cannot be overlooked,” said ATR President Grover Norquist. “The fact that the Pelosi-Reid-Obama agenda wants to raise taxes on every American family, send these jobs overseas and limit domestic energy development should be a wake-up call to every single voter. Penalizing energy producers who provide work for almost ten million people when unemployment is near ten percent is never a good idea.”

 


National Press & Talk Radio Alert:
To schedule an interview with Grover Norquist
call 202-785-0266 or email jkartch@atr.org

 

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Cap and Tax...And Tariffs!


Posted by Todd Hollenbeck on Friday, September 25th, 2009, 12:12 PM PERMALINK


A new analysis from Sallie James, trade policy analyst at the Cato Institute’s Center for Trade Policy Studies illustrates more reasons to oppose the Waxman-Markey Cap and Trade Bill. Not only is it a productivity killing energy tax, it will also likely lead to tariffs, lobbying, and other corruption. 

James explains that in order to silence fears that a cap and trade system will make American companies less competitive with countries that do not have carbon limiting measures in place, tariffs will be levied against those countries. In his testimony to the House Science and Technology Committee, Energy Secretary Steven Chu said carbon tariffs are a way to “level the playing field.” Another method being discussed to help “level the playing field” is to give away up to 85 percent of the emission permits to politically connected industries.
 
These tariffs and free allowances are most likely illegal by World Trade Organizations (WTO) agreements.  The free allowances may constitute “actionable” subsidies under the WTO Agreement on Subsidies and Countervailing Measures. The carbon tariff may also violate Article I and Article III of the General Agreement on Tariffs and Trade. These actions will cause backlash from countries on which these tariffs are imposed resulting in tariffs against US made exports. Back home, companies and industries will fight for political favors leading to more lobbying and corruption. As James writes, “A bill that is over 1,400 pages long and filled with loopholes, exceptions and special favors for certain industries, is an invitation for lobbying and corruption.” She quotes the Financial Times saying the bill would “create a perpetual struggle for political advantage.”
 
Click here to read the full analysis.

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How Cap and Tax Will Hurt New Jersey


Posted by Todd Hollenbeck on Friday, September 25th, 2009, 10:32 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in New Jersey.

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009
New Jersey:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, New Jersey will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of -$4,539,720,000.
  • Total Personal Income Loss of -$6,286,380,000.
  • Non-Farm Job losses of -48,291. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $597.45 per household.
  • Increase in Gas Prices from 2012-2035 of $0.63 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Frank R. Lautenberg: (202) 224-3224 
Senator Robert Menendez: (202) 224-4744

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How Cap and Tax Will Hurt New Hampshire


Posted by Todd Hollenbeck on Thursday, September 24th, 2009, 9:55 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in New Hampshire.
 
Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009
New Hampshire:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, New Hampshire will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of -$658,980,000.
  • Total Personal Income Loss of -$956,300,000.
  • Non-Farm Job losses of -8,105. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $495.70 per household.
  • Increase in Gas Prices from 2012-2035 of $0.67 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Judd Gregg: (202) 224-3324
Senator Jeanne Shaheen: (202) 224-2841

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How Cap and Tax Will Hurt Nevada


Posted by Todd Hollenbeck on Wednesday, September 23rd, 2009, 1:39 PM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in Nevada.
 
Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009
Nevada:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, Nevada will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of -$1,461,960,000.
  • Total Personal Income Loss of -$1,779,910,000.
  • Non-Farm Job losses of -$14,313. 
An update to the Heritage Foundation’s study further shows an:
  • Increase in Electricity Prices from 2012-2035 of $499.95 per household.
  • Increase in Gas Prices from 2012-2035 of $0.67 per gallon.
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator John Ensign: (202) 224-6244
Senator Harry Reid: (202) 224-3542

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How Cap and Tax Will Hurt Nebraska


Posted by Todd Hollenbeck on Tuesday, September 22nd, 2009, 10:13 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in Nebraska.
 
Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009.
Nebraska:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, Nebraska will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of -$920,440,000.
  • Total Personal Income Loss of -$1,141,640,000.
  • Non-Farm Job losses of -10,464. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $682.59 per household.
  • Increase in Gas Prices from 2012-2035 of $0.63 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Mike Johanns: (202) 224-4224
Senator Ben Nelson: (202) 224-6551

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