Thursday, March 14, 2013

Oil & Gas Industry Running Ads To Protect Subsidies

The American Petroleum Institute (API) began running cable and broadcast ads inside the Beltway in March.  The oil-and-gas lobby group wants to convince Congress to keep its hands off its industry tax incentives.  The ads are also intended to oppose billions in new oil and natural gas taxes. API believes punitive tax schemes kill jobs and decrease revenues to the federal government over the long term.

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)


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