To the Editor:
As the economy sputters along, members of Congress and the Obama Administration are singling out one of the most productive economic sectors in America. By proposing increased taxes on the oil and natural gas industry, President Obama seeks to penalize the very companies that helped keep the economy afloat following the recession.
The domestic oil and gas industry already pay a much higher tax rate than the majority of other businesses. Comparatively, other companies on the S&P pay an average of 26.5 percent, while oil and natural gas companies pay 41 percent.
This discrepancy was reinforced in a recent New York Times study, where results confirmed the oil and natural gas industry is not only taxed at a much higher rate than other industries but also does not receive equal tax breaks. Unfortunately, the government remains unsatisfied with the state of this already unfair situation.
Despite this, employment within the oil and natural gas industry has grown by 40 percent, while the rest of the economy saw a mere 1 percent growth in employment rates. What President Obama doesn’t seem to understand is this tax implementation will not only hurt the oil and natural gas industry, but also each citizen who depends on its resources as a necessary part of their everyday lives. This includes anyone who turns on a light switch, drives a car or simply enjoys the comforts of modern living.
I hope our leaders in Washington take a stand against the president’s proposal. The oil and natural gas industry play a key role in our energy portfolio, and we cannot unfairly target them with the implementation of higher taxes.
Sen. Jim Davis (R)
50th Senate District