FOR IMMEDIATE RELEASE:
September 12, 2008
Brian Kennedy (202) 621-2951
Top Findings from Study Examining “Gang of Ten” Revenue Offsets: Tax Hikes, Job Loss, and Increased Reliance on Unstable Regimes for Oil
A newly-released economic study warns that Congress’ “Gang of Ten” energy plan would increase America’s reliance on oil imported from unstable regimes like Venezuela, Nigeria and Russia. The report, released today by the Institute for Energy Research, outlines the economic burden this plan would levy on American businesses, workers, and households.
Main Problem: The study fingers the proposal’s plan to repeal oil and gas companies’ ability to claim Section 199, a manufacturing tax credit, as the primary cause of the projected economic hazards.
Impact of new taxes on American industry over 10 Years:
- 637,000 jobs lost
- $34.9 billion reduction in household income
- $13.6 billion of taxes paid by pension fund holders
- $185.9 billion decrease in total economic output
- Increased U.S. reliance on unstable regimes for oil
The bottom line is this: Increasing production costs means increasing reliance on imported oil. And the “Gang’s” repealing of the Section 199 manufacturing tax credit does just that.
The Institute for Energy Research (IER) is a not-for-profit public foundation that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets. Founded in 1989, IER is funded entirely by tax deductible contributions from individuals, foundations and corporations. No financial support is sought or accepted from government (taxpayers).