Obama Proposes Nearly $90 Billion in Tax Hikes on Energy Producers


Posted by Chris Prandoni on Monday, February 13th, 2012, 3:29 PM PERMALINK


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Obama Energy Tax Proposals  
The President’s FY 2013 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 2013-2022 budget:

Tax Increase FY 2013 FY 2013-2022 Industry impact
Increase Amortization Period $61 million             $1.4. billion $1.4 billion
Dual Capacity $530 million $10.7 billion $10.7 billion

Repeal Percentage Depletion:

Oil and Natural Gas

Hard Minerals

$612 million

$185 million

 

$11.4 billion

$1.7 billion

 

$11.4 billion

$1.7 billion

Repeal Intangible Drilling & Expensing of Exploration Cost for Coal

Oil and Natural Gas

Hard Minerals

 

$3.4 billion

$26 million


$13.9 billion

$440 million

$13.9 billion

$440 million

Section 199

Oil and Natural Gas

Hard Minerals

$587 million

$13 million

$11.9 billion

$270 million

$11.9 billion

$270 million

Repeal Tertiary Injectants $7 million $100 million $100 million
Superfund $1.4 billion $20.8 billion $10.5 billion
LIFO $5.5 billion $73.8 billion $25.8 billion
Passive Loss $9 million $82 million $82 million
Oil Spill Liability Trust Fund $55 million $717 million $717 million

* Data for FY 2014. 2013 calculations are not applicable.


ATR Recommendations
Congress should reject 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. Increased access would:

  • Create 1 million direct and indirect jobs by 2018 and over 1.4 million by 2030
  • Bring an additional 1.27 million barrels of oil equivalents per day online by 2015 and 10.4 million barrels per day by 2030
  • Raise over $800 billion in cumulative government revenue by 2030

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