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Hiking Oil Taxes Is A No-Brainer in More Ways Than One

This is a good article that you need to read:

Virginia Congressman James Moran recently gave some advice to the budget deficit Supercommittee in the Falls Church News-Press (“Moran’s News Commentary: Eliminate Tax Subsidies for Oil & Gas Industry,” November 2, 2011) restating his already well-known position on oil industry taxes.

It is a “no-brainer” says Moran. Raise them. Tax those oil companies until the federal government has money in the bank and all is well with the world.

But if the Supercommittee were foolish enough to take his advice, the budget problems we face today might be small potatoes compared to those we would bequeath our children. Massive tax hikes on U.S. producers of oil and natural gas – glibly portrayed as the elimination of “tax subsidies”- would not only put millions of American jobs as risk, it would deepen the fiscal hole that out-of-control federal spending has dug for us.

Taxing away the profits of any productive U.S. industry does bad things to the economy. In the case of oil and natural gas companies, credible studies have shown that a radically increased tax burden would stifle investment and output to the point that the government itself would lose money.

Economic projections suggest that taking away the “subsidies” Rep. Moran has targeted (which are actually just common business deductions specifically written into the tax code to stimulate growth and job creation in all industries) would trigger a slowdown and subsequent decline in taxable income that would cause the federal government to lose more than $83 billion. In addition to that, we would see 155,000 jobs eliminated and our GDP shrink by $341 billion over the next eight years.

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About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog.Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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