Repealing Energy Tax Cuts to Cost Jobs, Economic Output

Rigzone ^ | Rigzone Staff

[Rabin]

The Obama administration's decision to repeal tax deductions and dual-capacity tax credits for oil and gas producers may result in an initial loss of over 154,000 jobs by the end of 2011, according to Louisiana State University Endowed Chair of Banking and nationally-renowned economic Dr. Joseph R. Mason.

[Rabin]

Although the change applies to all corporations, the energy sector will be put at a strong disadvantage when competing against state-run oil and gas companies in such countries as China, Russia and Venezuela.

[Republican Wildcat]

They will not rest until every avenue of the private sector has been destroyed.

And some columnists criticized businesses for increasing their cash reserves rather than investing...why wouldn’t they? They don’t know if they will be the next one to have their taxes increased massively, regulated to the ground, or taken over entirely.

[Bhoy]

American Thinker has this story too:

Obama to kill more jobs
Ed Lasky

The latest job killing initiative by Barack Obama: focus new taxes on the oil and gas industry.

Joseph Mason writes in a New York Post op-ed:

Just last week, President Obama explicitly targeted the industry for two massive tax hikes. First, he’d ban oil and gas companies from using the “Section 199” tax credit, a measure for domestic manufacturers enacted in 2004 to boost US employment. (The Senate is set to vote this week on its version of the ban.) Second, he wants to end “dual capacity” protection for US energy firms.

Without this shield against double taxation on foreign revenues, American companies would be competing on an uneven global playing field. Again, Obama aims directly and specifically at the US oil and gas industry.

Yet, by the federal government’s own economic model, these tax hikes would lead to huge, immediate job losses. I ran the numbers through the Commerce Department’s RIMS II model; it shows, under the proposed changes to Section 199 and dual capacity, Americans would almost immediately lose more than 150,000 stable, private-sector jobs.

By repealing the tax credit US-based companies claim on the taxes they pay abroad, Obama’s “stimulus” plan would effectively double-tax American businesses — driving investment to foreign competitors that don’t face the same tax burden.

Again, Obama is enriching foreign oil companies at the expense of domestic ones. He has done this previously when he extended billions in loans to the Brazilian oil company Petrobras with extensive offshore oil programs through the U.S. Export-Import Bank, while trying to kills off offshore oil exploration in the Gulf by our companies.

Obama did it again this past week when the Ex-Im bank extended another billion in loans to support Mexican oil development in the Gulf. Obama seems to relish the opportunity to redistribute power and wealth to foreign countries and companies at our expense.

http://www.americanthinker.com/blog/2010/09/obama_to_kill_more_jobs.html

[Waco]

Will cost 150,000 jobs?? Which is EXACTLY what it was intended to do!!!