API launches new US advertising campaign against higher oil, gas taxes
American Petroleum Institute (API) chief executive Jack Gerard unveiled a new advertising campaign this week, which he says is to encourage lawmakers on the US Joint Select Committee on Deficit Reduction to focus on job creation and revenues through economic growth rather than what the API calls “punitive tax increases” on industry.
"We want to take every opportunity to reinforce that the oil and natural gas industry represents a big part of the solution to the issues the Super Committee is addressing," said Gerard.
"We're one of the few industries that has created jobs throughout the recession, generates about $86 million per day in federal revenue and could do much more of both with the right policies."
In 2010, oil and natural gas companies contributed more than $470 billion to the US economy in spending, wages and dividends – or more than half the size of the 2009 federal stimulus package, according to the API.
Gerard said that this industry provided stimulus "happens every year without an act of Congress and at no cost to taxpayers. Again, the kinds of activity our government should be encouraging.
"Unfortunately, we continue to hear suggestions from some in Congress and elsewhere that our industry should be singled out for tax increases. This makes no sense.
"Raising taxes only on oil and natural gas companies is not a serious strategy to deal with deficits or a slow economy. In fact, over the longer term, higher taxes would actually mean less revenue to the government because development and production would be reduced, which would reduce taxable income and royalties while increasing our reliance on imported energy.
"We have been delivering these messages all year through a comprehensive advocacy and communications campaign. As a next step we'll begin running a new ad campaign that recognizes some of the Super Committee members who have opposed efforts to raise energy taxes."
The new advertisements are available for online viewing, and have begun running on television in Michigan, Pennsylvania and Ohio.
"We're ready to do our part," said Gerard. "When Congress is prepared to address comprehensive tax reform, our member companies are prepared to be constructive partners in finding solutions that will treat all businesses fairly while providing opportunity to remain competitive."
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