Category — Oil and gas production
So let me see if I have this right – President Obama’s budget proposes to increase taxes on oil and gas by $36.5 billion over the next ten years, while laying out even larger sums for more politically favored energy sources – especially wind and solar. And the reason advanced for this is that these “subsidies [sic] are costly to the American taxpayer and do little to incentivize production or reduce energy prices.”
Neither of the claims in this statement is true. In fact, they are the opposite of truth. The oil and gas industries are major sources of revenues for governments at all levels in the US, and production incentives have contributed to a stunning turnaround in the country’s natural gas supplies – with higher production and lower costs a major feature.
Let’s take a look at these two myths individually.
Myth 1: The oil and gas business receives significant subsidies from the federal government.
Fact: Oil and gas production are major contributors of tax and royalty payments to all levels of government. Fortunately, for those interested in facts, the federal government publishes a lot of them, and they tell a stubborn truth. The oil and gas production business pays about $140 billion annually in royalties and corporate income taxes to the US government.
February 24, 2010 13 Comments