The Administration’s FY2017 Budget includes proposals that again target the U.S. oil and natural gas industry for tax increases. Between proposed tax reform “reserves” and other provisions, the industry would be burdened by over $400 billion in additional taxes. While tax reform is a worthy goal, it should be engaged without a preconceived assumption of winner and losers. Rather tax reform should be about creating jobs and opportunities in our economy – something that the oil and natural gas industry has certainly contributed to during this past recession.
America’s oil and natural gas industry already returns tens of millions to the federal Treasury every day, pays their fair share in taxes, and continues to provide well-paying jobs. Increasing the industry’s taxes would push oil and natural gas investment elsewhere, diminish job‐creation and stifle economic activity here at home. After a handful of years, we would see less domestic energy production – particularly of natural gas – more imports, fewer new jobs, and eventually depressed tax, royalty, and other revenues.
See this February 9, 2016 news release: API: Administration’s budget launches assault on American consumers
See document below for the specific provisions targeted in the FY2017 Budget: