Obama’s Proposed Oil and Gas Tax Hikes to Cost U.S. Economy 154,000 Jobs in 2011
White House’s new ‘stimulus’ plans would trigger loss of$341 billion in economic activity
WASHINGTON – The American Energy Alliance (AEA) today released astudy from Dr. Joseph R. Mason, Louisiana State University Endowed Chair ofBanking and nationally-renowned economist, which estimates that PresidentObama’s proposed energy tax changes would trigger grave economic consequences.In the newly released “Regional and National Economic Impact of Repealing theSection 199 Tax Deduction and Dual-capacity Tax Credit for Oil and GasProducers ,” Dr. Mason findsthe resulting fallout over the next ten years would include:
· Initial losses ofover 154,000 jobs by the end of 2011, not only in the energy sector but acrossthe whole economy;
· More than $341billion in lost U.S. economic output; and
· In excess of $68billion in lost wages nationwide.
“Thediscriminatory energy tax increases proposed by the administration will destroyAmerican jobs and raise the price of energy for consumers,” president andCEO of the American Energy Alliance Thomas J. Pyle said. “President Obama’sproposed changes – which would apply solely to oil and gas companies – havelittle to do with the debate over offshore drilling safety or even energypolicy in general. This tax grab merely represents punitive policies that arenow finding a place in the sun in the post-BP oil spill crisis politicalenvironment.“
“As we’ve seen inits 2011 budget and newly unveiled ‘stimulus’ plans, the Obama administrationaims to single out U.S. oil and gas firms and raise the cost of energy forconsumers by eliminating crucial tax credits to which all taxpayers areentitled,” Dr. Mason said.
“Thoughpoliticians think they are selectively targeting ‘Big Oil’ with these energytax proposals, they would actually devastate thousands of small Americanbusinesses nationwide as well as the workers who depend on them. With at least150,000 U.S. jobs at stake – in fields ranging from healthcare to real estate -it’s clear that the costs of repealing Section 199 and dual capacity faroutweigh the potential benefit of increased government revenues that may bederived from the proposal.”
Using thegovernment’s own economic model – the U.S. Commerce Department’s RIMS II system- Dr. Mason provides incredibly conservative economic impacts. In fact, thesealready staggering estimates do not even include the effects of the proposedtax increases on individual investors. That means if Congress implements theseproposed changes, the economic fallout could be even more substantial.
Founded in May, 2008,The American Energy Alliance (“AEA”) is a not-for-profit organization thatengages in grassroots public policy advocacy and debate concerning energy andenvironmental policies. AEA is the advocacy arm of the Institute for Energy Research (IER), a not-for-profit organization – founded in 1989- that conducts intensive research and analysis on the functions, operations,and government regulation of global energy markets.