For Immediate Release
Monday
February 1, 2010
Contact Information:
Steve Higley 202-552-8455
Increased Taxes on Energy in the President's Proposed Budget Are Counterproductive
“We are disappointed that the administration has again chosen to single out the American oil, gas and refining community for additional taxes under the guise of leveling the playing field with other corporations. In fact, it accomplishes the opposite and puts our members at a precarious disadvantage with foreign fuel producers.”
WASHINGTON, D.C. – Charles T. Drevna, President of NPRA, the National Petrochemical & Refiners Association, today took issue with a proposed $26.2 billion tax increase on the oil, gas and refining community contained with the President’s annual budget. The budget proposal would eliminate Section 199 manufacturing tax credits NPRA members receive under the American Jobs Creation Act of 2004, placing them at a unique disadvantage with other domestic businesses and foreign energy producers. The proposal also eliminates LIFO accounting for all domestic businesses.
“The President’s budget proposal includes roughly $26.2 billion in extra taxes over the next decade specifically targeted at our businesses,” Drevna said. “That $26.2 billion could have been invested in newer, cleaner technologies, increasing efficiency, and developing new resources to fuel our economy and drive domestic manufacturing. We are disappointed that the administration has again chosen to single out the American oil, gas and refining community for additional taxes under the guise of leveling the playing field with other corporations. In fact, it accomplishes the opposite and puts our members at a precarious disadvantage with foreign fuel producers.
“We applauded the President last week during his State of the Union address for stating his desire to increase domestic energy production, including oil and gas, to help stimulate the economy and create more opportunities for the unemployed. The additional taxes on our businesses run counter to those stated objectives, however, and will do nothing to stimulate increased investment.”
Additional Resources
- American Oil and Gas Companies Already Pay Record Amounts in Taxes
- Punitive Taxes and Renewable Fuel Trade-Offs Do Not Enhance Energy Security or Environmental Quality
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NPRA members include more than 450 companies, including virtually all American refiners and petrochemical manufacturers. Our members supply consumers with a wide variety of products and services used daily in their homes and businesses. These products include gasoline, diesel fuel, home heating oil, jet fuel, lubricants and the chemicals that serve as “building blocks” in making everything from plastics to clothing to medicine to computers.