A new academic study has this advice for the administration on its proposal to raise taxes on energy companies: Don't do it - go with increased oil and natural gas production instead.
Louisiana State University Professor Joseph Mason says lost economic output, lost jobs and reduced tax revenues would result if the administration succeeds in eliminating a pair of tax treatments now available to oil and natural gas companies - ironic since the administration claims hiking taxes would generate revenue and help lower the deficit. Specifically, higher energy taxes would mean:
- $341 billion in lost economic output, 2011-2020
- 155,000 jobs lost in 2011 and 115,000 each year thereafter until 2020
- $68 billion in lost wages, 2011-2020
- $83.5 billion in reduced tax revenues to government
According to... more »