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NTU Campaign to Fight Energy Taxes


Pete Sepp
September 3, 2010

Despite a poor forecast for economic recovery this year, the Senate may soon repeal tax provisions specifically designed to encourage domestic employment, while simultaneously hitting U.S. energy companies with new taxes that will place their overseas counterparts at a competitive advantage. In response to these proposals, NTU launched a new nationwide TV and radio ad campaign to educate taxpayers about the negative economic impacts of these proposed tax hikes.

The most significant of the new tax increases would eliminate the “dual capacity” tax credits currently enjoyed by all U.S. companies – but only for the oil and gas industry. In addition to costing jobs, this selective double tax will work to the benefit of state-owned energy companies in places like Venezuela, China and Russia. And further confounding logic, these tax increases could actually erode the $160 billion in annual tax revenues the industry already provides to government coffers, as the position of U.S. companies abroad is financially weakened.

Unfortunately, this outrageous double tax for American energy isn’t the end of Washington’s whack-a-mole game. In a supreme twist of irony, the Senate is scheduled to vote on a proposal September 14th that would attach additional job-killing energy taxes to the “Small Business Jobs” bill. An amendment from Sen. Bill Nelson (D-FL) would eliminate the Section 199 manufacturers’ deduction, but again, only for the oil and gas industry. This deduction was put in place for the explicit purpose of domestic job creation; hardly ideal compared to reforming the whole monstrous corporate tax code, but moderately helpful in offsetting high rates.

The oil and gas sector employs or supports 9 million Americans and a trillion dollars of economic activity annually. Reliable, affordable energy supplies also reduce costs and instability across the economy as a whole. New taxes that reduce production and increase expenses ultimately fall on the backs of all consumers and businesses – not just the oil and gas industry.

If we let Congress get away with this, the predatory tax proposals will keep coming, and it will get tougher to extend all of the vital 2001 and 2003 tax relief laws. That’s why our ad campaign – and our grassroots mobilization effort – is going full throttle. We urge citizens to take action now!


 

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Submitted by Tom at: September 14, 2010
@Tim, I think you're missing a key piece of information. The reason gas was $4.00/gallon is thanks largely to TAXES. We're here fighting those taxes so that you'll be paying less at the pump.

Submitted by Tim at: September 10, 2010
Here we have another far right organization trying to get out of paying their share. Where the hell were you when gas prices were $4.00+ per gallon? How lovely that you can advocate for the rich, while waging war on other organizations that aid the poor (acorn for example). The Arkansas project yet another example. While my 'senator' was engaging in backroom deals settling the tobacco buyout, we farmers got screwed.

Submitted by middleclassman at: September 9, 2010
Scottie and Opera Lover, you guys really need a new rap. You're stuff is beyond stale.

Submitted by Ruger1 at: September 7, 2010
As a small business owner, any new taxes will but a real burden on sales. we will be forced to raise prices, this will put most US made products far above foreign imports, stopping sales. More dependency on imports. This is not what any US company needs, or can afford. Our goverment needs to get back on track or else.

Submitted by JD Rockefeller at: September 6, 2010
opps .. forgot my name .. and please forgive the typos too!

Submitted by Anonymous at: September 6, 2010
There is a lot of truth that one need not take away from the fat man on order to feed the hungry. There is a more truth that the fat man has the rules written in his favor; the table is set for him because he has purchased access to the rule writers. Look no further thent he Wall Street Bail-out; do you have Geitner's personal cell phone number? If you did, would he take you call?

Submitted by Tom at: September 6, 2010
Although unfounded assumptions and character defamation is always welcome here, NTU is no shill for a particular industry. We fight against taxes of all kinds on a local, state and federal level. Don't believe me? Peruse the website. We have a whole section on action you can take in your state. Looking to fight your property taxes? We can help. Whether you're an ordinary citizen or a major industry employing thousands of citizens... we'll be looking to reduce big government. On another note, its always interesting to see people who cling to a mercantilist view despite all evidence to the contrary. Wealth in this world is not some set pie, whereupon by achieving more one must have taken from someone else. As a great man once said, "We have so many people who can't see a fat man standing beside a thin one without coming to the conclusion that the fat man got that way by taking advantage of the thin one!" Despite your assertions to the contrary, by taxing businesses you're not giving money to the people, you're taking it away! Please check out any economics textbook if you're interested in learning who really pays when taxes are levied.

Submitted by OperaLover at: September 6, 2010
Thank you Scottie, I agree with you. NTU, you guys should be ashamed of yourselves with your shameful propaganda. The fact that big energy corporations are threatening to cut jobs if their taxes are increased is disgusting. This industry has earned billions off the backs of citizens, including the middle class. You guys are a pawn for the energy industry, along with other big corporations, to help them continue crapping on the American people!

Submitted by Scottie at: September 5, 2010
I bet your organization is funded by big energy. How many tax breaks has your "union" lobbied for and the feds given you? You greedy people won't be happy until the middle class disappears.