13 Sep 2010 05:01 Africa/Lagos
Obama's Proposed Oil and Gas Tax Hikes to Cost U.S. Economy 154,000 Jobs in 2011
White House's new 'stimulus' plans would trigger loss of $341 billion in economic activity
WASHINGTON, Sept. 13 /PRNewswire-USNewswire/ -- Louisiana State University Endowed Chair of Banking and nationally-renowned economist Dr. Joseph R. Mason estimates that President Obama's proposed energy tax changes would trigger grave economic consequences. In the newly released "Regional and National Economic Impact of Repealing the Section 199 Tax Deduction and Dual-capacity Tax Credit for Oil and Gas Producers," Dr. Mason finds the resulting fallout over the next ten years would include:
-- Initial losses of over 154,000 jobs by the end of 2011, not only in
the energy sector but across the whole economy;
-- More than $341 billion in lost U.S. economic output; and
-- In excess of $68 billion in lost wages nationwide.
"As we've seen in its 2011 budget and newly unveiled 'stimulus' plans, the Obama administration aims to single out U.S. oil and gas firms and raise the cost of energy for consumers by eliminating crucial tax credits to which all taxpayers are entitled," Dr. Mason said.
"Though politicians think they are selectively targeting 'Big Oil' with these energy tax proposals, they would actually devastate thousands of small American businesses nationwide as well as the workers who depend on them. With at least 150,000 U.S. jobs at stake - in fields ranging from healthcare to real estate - it's clear that the costs of repealing Section 199 and dual capacity far outweigh the potential benefit of increased government revenues that may be derived from the proposal."
"The discriminatory energy tax increases proposed by the administration will destroy American jobs and raise the price of energy for consumers," president and CEO of the American Energy Alliance Tom Pyle said. "President Obama's proposed changes -- which would apply solely to oil and gas companies -- have little to do with the debate over offshore drilling safety or even energy policy in general. This tax grab merely represents punitive policies that are now finding a place in the sun in the post-BP oil spill crisis political environment."
Using the government's own economic model - the U.S. Commerce Department's RIMS II system - Dr. Mason provides incredibly conservative economic impacts. In fact, these already staggering estimates do not even include the effects of the proposed tax increases on individual investors. That means if Congress implements these proposed changes, the economic fallout could be even more substantial.
Dr. Mason's report was sponsored by Save U.S. Energy Jobs - a project of the AEA - established to help promote the nation's energy sector. To learn more and get exclusive information on upcoming projects, follow Save U.S. Energy Jobs on Twitter and Facebook.
Founded in May, 2008, The American Energy Alliance ("AEA") is a not-for-profit organization that engages in grassroots public policy advocacy and debate concerning energy and environmental policies. AEA is the advocacy arm of the Institute for Energy Research (IER), a not-for-profit organization - founded in 1989 - that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets.
Source: American Energy Alliance
CONTACT: Laura Henderson of American Energy Alliance, +1-202-380-5758
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