API has long called the incentives cost-recovery mechanisms and business deductions that other sectors receive. It says the federal government would single the oil-and-gas industry out by blocking it from such tax treatment. API believes erasing the oil-and-gas industry’s ability claim the various tax items would deter investment in the United States and the drop in long-term federal revenues would outweigh any short-term gains. Basically API believes higher energy taxes would undermine development.
President Obama and many Democrats want to strip $4 billion in annual tax breaks given to oil-and-gas companies. (The Hill, 3/13/2013)