By January 17, 2013 0 Comments Read More →

Tax increases on ‘Big Oil’ will hurt small business in state

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If our elected officials intend to keep their promises to protect the average American citizen from changes in the tax policy, I hope they realize the ripple effect their actions will have if certain tax tax proposals are passed.

Most of these tax incentives were originally provided by Congress to encourage the production of more domestic energy for this country and free us from a dependence on foreign oil. Louisiana is the No. 2 producere of propane in the United States. Now that the incentives are working, Congress proposes to change the game.

Some in Congress might be tempted, for expample, to hit “Big Oil” with tax increases. Raising taxes on oil and gas companies would also hurt thousands of small businesses in Louisiana and across the country that aren’t making huge profits.

These small businesses would still be hit with higher taxes, a cost that will be passed on to the consumer in the form of higher prices at the pump. Even your electric rates will be higher, as a considerable percentage of our electrical production comes from natural gas, as well.

The effects of these tax increases will go further than “Big Oil.” Because propane is a byproduct of oil and gas, any tax increase would affect propane businesses in our state. Louisiana needs small businesses like ours to move our economy forward and to maintain jobs in this state.

Beware the unintended consequences. Taking away tax incentives on oil and gas will hurt all of us here in Louisiana.

 

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Posted in: Opinion

About the Author:

The Louisiana Oil & Gas Association (known before 2006 as LIOGA) was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includes exploration, production and oilfield services. Our primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by creating incentives for Louisiana’s oil & gas industry, warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana.

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