A recent pair of studies demonstrate the benefits of allowing increased offshore oil and natural gas development in federal waters, as it would raise billions of dollars in tax revenue without raising a nickel in taxes.
According to the studies, oil and natural gas development in federal waters off of the U.S. Atlantic coast and the Eastern Gulf of Mexico would raise over $84 billion in new federal revenue over a 20-year forecast period. Additionally, the studies predict that the same offshore development would generate roughly $40 billion in state and local taxes over the same forecasted period.
Details of the projected benefits include:
- Over $70 billion in federal personal income and payroll taxes ($48.87 billion from Atlantic coast development and $21.39 billion from the Eastern Gulf of Mexico).
- $10.7 billion in federal corporate income tax ($7 billion from Atlantic coast development and $3.69 billion from the Eastern Gulf of Mexico).
- $3.66 billion in federal business sales, property, excise, custom and other taxes ($2.38 billion from Atlantic coast development and $1.28 billion from the Eastern Gulf of Mexico).
Revenues generated from offshore development could be used to provide further relief to Americans tax payers by providing an offset for future tax cuts. Additionally, the revenue could be used to bankroll infrastructure spending and provide an alternative funding source to the highly regressive gas tax.
Increased exploration and development in our federal waters would be another step forward to achieving President Trump’s energy-dominant vision for America. The economic benefits of increasing American production of oil and natural gas strengthen our energy independence and our standing in the global market.