Energy expert warns new taxes on American energy companies in White House budget proposal would stifle economic recovery, slow job creation, hurt investors
WASHINGTON — Although President Obama promised a renewed focus on growing the economy and creating jobs during last week’s State of the Union address, his 2011 budget proposal delivered to Congress Monday includes new energy taxes that will do the exact opposite. Responding to these potentially harmful proposals, Jack Rafuse, principal of the Rafuse Organization, released the following statement:
“The Administration’s new federal budget proposal aims to deny the oil and natural gas industry a tax deduction allowed to all manufacturing companies. This move would levy an incredible burden on American businesses, workers and households.
“For example, according to the Energy Policy Research Foundation, approximately 18 percent of our domestic oil production comes from 83 percent of America’s oil wells. A lot of this oil is produced by small, independent companies. New taxes on our domestic energy industry would hit those producers the hardest, drying up the cas flow that they depend on.
“Moreover, the U.S. oil and natural gas industry currently supports 9.2 million jobs nationwide. The proposed new energy taxes could force a lot of these hard-working Americans to join the already very large number of our country’s unemployed. And, if these new taxes are implemented, everyday investors stand to lose, too. Retail investors — plus the IRAs, mutual funds and pension plans that retirees are counting on — own more than 93 percent of America’s publically-traded oil and natural gas companies. Adding to the tax burden of these energy companies simply means subtracting investor savings.
“We need creative ideas to get our economy back on track and people back to work. Levying new taxes on America’s energy companies is certainly not one of them.”
Follow Jack Rafuse on Twitter: @TheRafuseOrg