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Obama Energy Tax Proposals  
The President’s FY 2014 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 2014-2023 budget:

Tax Increase

FY 2014

FY 2014-2023

Industry Impact

Increase Amortization Period for G&G

$60 million

$1.4 billion

$1.4 billion

Double-taxing Dual-Capacity taxpayers

$550 million

$11 billion

$11 billion

Repeal Percentage Depletion:

  • Oil and Natural Gas
  • Hard Minerals

 

$1 billion

$113 million

 

$10.7 billion

$2 billion

 

$10.7 billion

$2 billion

Repeal Intangible Drilling & Expensing of Exploration Cost for Coal

  • Oil and Natural Gas
  • Hard Mineral

 

$1.7 billion

$25 million

 

$11 billion

$430 million

 

$11 billion

$430 million

Section 199

  • Oil and Natural Gas
  • Hard Mineral

 

$1.1 billion

$33 million

 

$17.4 billion

$400 million

 

$17.4 billion

$400 million

Repeal Tertiary Injectants

$8 million

$100 million

$100 million

Superfund

$1.4 billion

$20.2 billion

$10.1 billion

LIFO

$3.5 billion

$80 billion

$28.3 billion

Passive Loss

$7 million

$74 million

$74 million

Oil Spill Liability Trust Fund

$64 million

$1 billion

$1 billion

ATR Recommendation
Allow all employers to deduct all of their business expense 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 for.