Oil and gas industry group officials voiced concerns Wednesday over the discussion draft of tax reform proposals introduced by Ways and Means Committee Chairman Dave Camp (R-MI).
House Ways and Means Committee Chairman Dave Camp released a comprehensive discussion draft to overhaul the U.S. Internal Revenue Code Wednesday, which would impact nearly all U.S. taxpayers and the way business income is taxed in the United States.
The proposed overhaul of the United States’ tax code could harm job creation and the United States’ energy and manufacturing sectors, American Petroleum Institute (API) President and CEO Jack Gerard said in a statement.
API sees “series flaws” in the discussion draft regarding cost recovery and LIFO accounting that could hurt jobs, American energy production and U.S. energy security.
“America’s oil and natural gas industry already generates $85 million per day for the federal government,” Gerard said. “Higher taxes on energy and manufacturing would hit American families and workers by undermining private investment, job creation, energy production and government revenue.”
Both Gerard and Barry Russell, president and CEO of the Independent Producers Association of America (IPAA), praised Camp’s effort into developing a federal tax reform proposal. Russell also commended Camp on the retention of the current tax treatment for intangible drilling costs.
“This longstanding tax deduction provides producers with the ability to reinvest 150 percent of their cash flow into new U.S. production,” Russell said. “Retaining this provision will enhance the American production that is now being recognized as driving much broader investment in U.S. manufacturing.”
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