At a time when America needs economic stability and increased energy security, the government should not impose new taxes and fees on the oil and natural gas industry.
The Administration is considering new taxes on the oil and natural gas industry. Raising taxes as the economy is trying to recover from a deep recession is a recipe for disaster—placing the burden on hard-working Americans and their families. Higher energy taxes that reduce production and increase consumer costs will take money from every American household:
- New taxes kill jobs. With America trying to recover from a deep recession, new taxes could hurt workers by depressing job creation just when employers would otherwise be looking to add employees.
- New taxes hurt consumers and businesses. Historically, higher taxes result in less domestic energy production, and restrained supplies often lead to higher energy costs for consumers. In today’s economy, repeating that cycle would not only stifle a recovery but it would also leave Americans more dependent on more expensive foreign oil and natural gas. In addition, it would result in fewer jobs for U.S workers.
- The U.S. oil and natural gas industry is one of the success stories of the American economy, supporting 9.8 million workers in good jobs that offer good wages and benefits. These workers include welders, electricians, truckers, gas station owners and attendants and small business owners who work hard to bring energy to America’s homes, factories, hospitals and cars. Additional taxes would likely drive these jobs overseas at a time when America needs to create jobs.
- Millions of Americans have seen their retirement savings shrink. Billions of dollars in new taxes on U.S. oil and natural gas companies will hurt millions of Americans whose retirements depend on mutual funds, pension and retirement plans that own oil company shares.
- Plans to strengthen America’s energy security would be undermined since higher taxes would lead to less—not more—domestic oil and natural gas production. All reputable forecasts show that energy in the form of oil and natural gas will be required to meet the majority of America’s needs for decades to come. As the economy recovers, America will need all the energy it can produce. Higher taxes would rob the industry of the capital it needs to invest in alternative sources, and reduce supplies of the oil and natural gas needed as a bridge to thefuture.
At a time when other countries are providing incentives to develop their own energy resources, the U.S. is the only country actively discouraging it. The bottom line is that what happens in the oil and natural gas industry reverberates throughout the economy.