The Administration’s FY2016 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 almost $95B 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 taxes at far higher effective rates than most other industries, and is one of the few industries that have created jobs throughout the economic downturn. 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 document below are the specific provisions targeted in the FY2016 Budget: