API AD Campaign Fights Punitive Taxes on Industry
Fight for jobs. Fight against tax increases. Those issues are the focus of a new ad campaign from the American Petroleum Institute asking voters to support oil and gas industry advocate lawmakers.
The ads target voters in Michigan, Ohio and Pennsylvania, saying if new energy tax policies are passed, consumers will pay more for electricity and to fill up gas tanks.
Michigan congressmen Dave Camp and Fred Upton, Ohio Sen. Rob Portman and Pennsylvania Sen. Pat Toomey – members of the Joint Select Committee on Deficit Reduction – appear in the ads, which ask voters to support their representatives in the fight for jobs and fight against proposed energy taxes.
API officials say proposed tax increases on the oil and gas industry will decrease the number of American jobs, federal revenue and energy production at a time when the country could benefit from these factors the most.
"We want to take every opportunity to reinforce that the oil and natural gas industry represents a big part of the solution to the issues the Super Committee is addressing," API President and CEO Jack Gerard said. "We're one of the few industries that have created jobs throughout the recession, generates about $86 million per day in federal revenue, and could do much more of both with the right policies."
According to an API news release distributed Nov. 8, oil and natural gas companies in 2010 directly contributed more than $470 billion to the U.S. economy in spending, wages and dividends – more than half the size of the 2009 federal stimulus package.
"Raising taxes only on oil and natural gas companies is not a serious strategy to deal with deficits or a slow economy. In fact, over the longer term, higher taxes would actually mean less revenue to the government because development and production would be reduced, which would reduce taxable income and royalties while increasing our reliance on imported energy," Gerard said.
The specific tax policies the API says potentially impact the oil and gas industry include:
- Repeal Expensing of Intangible Drilling Costs
- Repeal Sec. 199 for Oil and Natural Gas Companies
- International Reform/Dual Capacity
- Raising the Oil Spill Tax
- Repeal LIFO (Last-In First-Out)
- Reinstate Superfun Taxes
- Increase G&G Amortization Period
- Repeal Expensing of Tertiary Injectants
- Repeal EOR Credit and Marginal Well Credit
- Repeal Percentage Depletion
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