As prepared for delivery
Press briefing teleconference on tax ads
Marty Durbin, API executive vice president
Wednesday, March 13, 2013
Opening statement:
Good morning everyone and thanks for calling in.
As Congress and the administration grapple with the nation’s ongoing fiscal crisis and as the possibility that Congress may consider some form of tax reform this year grows, the API wants to remind lawmakers, the president and the public of the positive role the oil and natural gas industry plays in America’s economy.
The good news is that most of the public already “gets it.”
For example, the Election Day poll we conducted showed more than two thirds of voters thought higher energy taxes were harmful and could increase energy costs.
Further, our polling shows that the public is highly skeptical of increasing taxes on energy.
Now we need to make sure more Washington lawmakers understand, get that message and realize what’s at stake.
To that end, starting today, the API is running ads on broadcast and cable channels that feature the unscripted words of everyday Americans who believe higher taxes on energy companies may translate into higher energy costs for them.
You can see the ads on our website, www.api.org
We decided to run the ads to remind Congress that at a time when many families have had to scramble to balance their budgets, asking them to pay more for the energy they need to live their lives is bad policy and frankly bad politics.
And, to remind Congress what study after study indicates: punitive tax schemes would kill jobs and decrease revenue to the federal government over the long-term.
In fact, according to a study by Wood Mackenzie a $5 billion per year tax increase would result in a decrease of $233 billion in revenue to federal, state and local governments by 2030.
Further, the study estimates that increased investments, as a result of pro-growth and energy development policies, could generate an additional $800 billion in revenue by 2030. That’s a $1 trillion difference to government’s bottom line.
The nation’s fiscal problems should be addressed – but not in a short-sighted way. Higher energy taxes undermine development and are at odds with a common sense, pro-growth economic strategy.
Should Congress decide to tackle true comprehensive tax reform, we believe the only way to achieve that goal is to include every industry and sector of our economy in the reform discussion.
Today, America’s oil and natural gas industry supports more than 9.2 million jobs and contributes more than $1 trillion to our nation’s GDP annually. The oil and natural gas industry pays more taxes than any other industry and at effective rates substantially higher than most.
In the final analysis, punitive tax schemes would needlessly hinder an industry that continues to be an engine for economic growth and job creation, and has the potential to do far more.
Now, should Congress decide to tackle true comprehensive tax reform, the oil and natural gas industry is prepared to be a constructive partner in any discussion that seeks to develop a fair, competitive and pro-growth tax code. We believe the only way to achieve that goal is to include every industry and sector of our economy in the reform discussion.
If increased revenue is truly the objective, then allow the oil and natural gas industry to continue to do what it has always done – invest in America’s economy by providing good-paying jobs here at home that develop the energy America needs. That’s what the American people support and in the long-term the result would be far better for the American economy, for consumers, for our energy security, and for the nation’s long-term economic growth.
Thank you and now I’ll be happy to take questions.