One industry more than any other was singled out by the tax provisions in the budget outline released by the White House on Thursday.
That was the U.S. Oil and Gas industry.
"Eliminate oil and gas company preferences," read the line on page 10 of the Summary Tables issued by the Office of Management and Budget.
The plan would levy an excise tax on oil and gas from the Gulf of Mexico, limiting excess royalty relief allowed during the Bush Administration.
It would also repeal a series of existing tax provisions:
- The enhanced oil recovery credit
- The marginal well tax credit
- The expensing of intangible drilling costs
- The deduction for tertiary injectants
- The passive loss exception for working interests in oil and natural gas
properties
- The manufacturing tax deduction for oil and gas
- The percentage depletion for oil and natural gas
All of that would raise over $31 billion from the oil and gas industry.
"With America in the midst of an economic recession, now is not the time to impose new taxes on the nation's oil and natural gas industry," said Jack Gerard, head of the American Petroleum Institute.
Industry backers denounced the effort, arguing it was basically a 13% tax on energy production in the Gulf of Mexico and would financially harm the industry, causing a loss of jobs.
Big Oil has long been Enemy #1 for the Democrats.
Now we'll see if they can actually get these plans approved. One would think that Democrats from oil and gas producing states around the Gulf like Texas and Louisiana might not sign on.
Just one of the many budget battles that awaits the Congress.
About the Author
Featured
