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.