NTU launches informational campaign to stop higher energy taxes

Source: National Taxpayers Union

The 362,000-member National Taxpayers Union (NTU) launched an over $4 million national television and radio advertising campaign to oppose efforts from federal officials that would increase taxes on American energy companies. The NTU spots, which stress the negative economic and job-loss impact of the tax proposals, will appear on national cable networks and on local stations in Arkansas, Iowa, Nebraska, Virginia, and Washington. 

Congress is considering an extremely destructive "double tax," through repealing a widely available credit that offsets taxes paid to other countries. However, this new "double tax" would apply only to energy providers here in the U.S. – meaning state-owned companies in countries like Venezuela and China will effectively receive a competitive edge over American firms. Ironically, even BP – the target of Congress's ire over the Gulf spill – will gain a tax advantage. Also under consideration in the U.S. Senate is a repeal of Section 199 of the U.S. tax code, a manufacturers' deduction, for only the oil and gas industry. The deduction allows companies to reinvest revenue into creating jobs and domestic economic growth. 

The two provisions help to offset the high rates and complexity that make the U.S. corporation income tax system one of the most burdensome in the industrialized world. Repealing them would not only hurt one of the few relatively well-performing sectors of our economy, it could also signal a new wave of punitive tax policies aimed at politically convenient targets. Furthermore, with heavier across-the-board burdens looming due to inaction on extending the 2001 and 2003 taxpayer relief laws, the prospect of a recovery is already tenuous.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs