Obama Energy Tax Proposals
The President’s FY 2015 budget contains billions in tax increase on energy production and consumption. These taxes will result in higher prices at the pump, increased utility bills, and fewer American jobs as companies flee the U.S. and companies cannot recover their investments. Below is a breakdown of energy taxes Obama put forth in his 2015-2024 budget:
Increase Amortization Period for G&G
Double-taxing Dual-Capacity taxpayers
Repeal Percentage Depletion:
Repeal Intangible Drilling & Expensing of Exploration Cost for Coal
Repeal Tertiary Injectants
$ 100 million
Reinstate Superfund barrel of oil excise tax
$ 11.6 billion
Retroactively repeal LIFO accounting
Repeal Passive Loss
Ratchet up Oil Spill Liability Trust Fund tax
That’s an energy tax increase of nearly $100 billion by 2024!
Allow all employers to deduct all of their business expenses in the year they are incurred. In the same budget President Obama argues for full business expensing for small businesses, he looks to lengthen – or eliminate entirely – cost recovery mechanisms for America’s energy producers. This sort of duplicity is not only inequitable, but hamstrings the American economy.
Investment is essential to economic growth. The easiest and fairest way to ensure businesses spend money is to allow them to recoup their expenditures immediately, not depreciate or amortize expenses over arbitrary periods of time. Needlessly tying up capital in strange depreciation tables only exacerbates our current economic morass; yet, this is exactly what President Obama is advocating.