So President Obama wants to end so-called “tax loopholes” for American oil and gas companies? Sounds like a good idea, until you learn that what the President is really asking. The “Close the Big Oil Tax Loopholes Act” essentially asks American taxpayers and businesses to shoulder the economic brunt of the administration’s ambitious green energy objectives.
The president’s budget calls for the repeal of current tax subsidies for the “Big 5” oil companies, the so-called “dual capacity” tax rule. Coincidentally the president has also called for $2 billion to fund the “Green Energy Fund Security Trust,” which would take dollars from “profitable oil and gas companies” and spends it on “green” energy research.
Eliminating dual capacity will result in double-taxation of American oil and gas companies, which means we will all pay more at the pump and pay more for the goods and services provided by American businesses.
As our economy continues to struggle to recover from the recession, the last thing this administration should be proposing is another tax increase funded on the backs of U.S. citizens and U.S. businesses.
I support energy diversification, but let the market present economically viable solutions on its own dime.