Industry + Taxes
America’s energy outlook has significantly improved with the exploration and development of domestic oil and gas reserves as a result of new extraction technologies. These technologies are leading to a manufacturing renaissance that is positively impacting the American economy, consumers, and businesses. Imposing punitive and counterproductive tax increases on domestic fuel and petrochemical manufacturers and oil and natural gas producers will harm America’s economy, consumers and workers. Increasing taxes will hurt this energy boom in the U.S., resulting in lost American jobs, increased energy costs, and increased reliance on foreign oil, fuels and petrochemicals.
The tax provisions applicable to fuel and petrochemical manufacturers are not unique to the oil and gas industry. They are tax provisions widely used among all manufacturers. These provisions help the oil and natural gas industry support over 9 million domestic jobs and help make up 7.7% of the U.S.’s gross domestic product. Along with the positive impact this sector has on the economy, the industry additionally contributes, on average, $85 million a day in taxes, rents and royalties to the federal government and pays among the highest average effective tax rates in the U.S. These deductions protect the jobs of American workers and America’s global competitiveness and preserve a critical manufacturing base responsible for 95 percent of all fuels made in the United States.
Key fuel and petrochemical manufacturing tax provisions: