The president’s FY 2015 budget proposal contains no new ideas in the oil and natural gas sector, recycling earlier calls for tax hikes that would hurt job creation, energy production, and government revenue, said API President and CEO Jack Gerard.
“The president Obama should be concerned about the deficit of new ideas in his budget,” said Gerard. “Raising taxes on U.S. oil and natural gas companies would undermine the investments in energy production that are driving job creation and moving us closer to energy security than we have been in decades.”
Policies that promote domestic development of oil and natural gas resources – including allowing more production on federal lands and waters – could create more than 1 million new jobs and raise $127 billion in government revenue in under a decade, a study by Wood Mackenzie study found.
“The average oil and natural gas job pays about seven times the federal minimum wage, and the natural gas renaissance has led to lower CO2 levels,” Gerard said. “Higher energy taxes would set back the president’s own goal of addressing income inequality and undermine his ability to achieve his climate goals.”
The U.S. oil and natural gas industry already pays the highest effective tax rate, 44.0 percent compared to 30.2 percent for the rest of the S&P industrials. Higher taxes on oil and natural gas would discourage investment in America’s energy production, leaving the government with less revenue and reduce job creation, according to the Wood Mackenzie study.
“America’s energy and manufacturing renaissance is creating jobs all over the country and raising billions in revenue for the government,” said Gerard. “The president’s tax hikes on oil and natural gas could raise consumer costs, harm needed job creation and lessen government revenue.”
API represents all segments of America’s oil and natural gas industry. Its more than 580 members produce, process, and distribute most of the nation’s energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.