A new study warns that President Obama’s proposed energy taxes would impel job loss, reduce economic activity, and deprive states of much needed tax revenue. Examining the economic impact a repeal of Section 199 and a rewriting of dual-capacity tax law for oil and natural gas producers would have on the economy, Dr. Joseph R. Mason reveals how imprudent these proposals are.
Published by the American Energy Alliance, Dr. Mason finds that repealing these tax deductions—which are enjoyed by every domestic company—only for energy producers would result in:
- The loss of over 150,000 jobs across the country by the end of 2011
- The loss of 56,000 jobs, and $24 billion in wages, to the Gulf community
- A loss of $68 billion dollars in wages nationwide
- The loss of $18 billion in local government revenue
- The loss of $65 billion in federal revenue
- $341 billion dollars in reduced U.S. economic activity between 2011 and 2020
It is important to note that these tax hikes—and subsequent economic repercussions—have been proposed in the Presidential FY 2011 Budget and used as “pay-fors” by Democrats in numerous pieces of legislation.