API: Raising Taxes on American Businesses is the Wrong Approach for Rebounding Economy

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May 09, 2011, 04:41 ET

WASHINGTON, May 9, 2011 /PRNewswire-USNewswire/ -- Brian Johnson, API's senior tax advisor, today joined Americans for Tax Reform, the U.S. Chamber of Commerce, and the Small Business & Entrepreneurship Council to refute proposals in Congress to raise taxes on energy and what it could mean for American businesses, our economy, jobs, and gas prices.

During a joint press briefing this morning, Johnson disproved the argument that raising taxes on the U.S. oil and natural gas industry would help the American economy.

"More taxes would do nothing to lower prices. They would not affect the global economics underpinning oil supply and demand, which explain today's gas prices," Johnson said. "They would, however, hurt the economy by reducing energy investment and the new jobs that would flow from that investment.

"Proponents of tax increases need to get serious about American jobs and American investment. Oil and natural gas companies can do much more to help, but the right policies are needed to facilitate this. Increasing taxes is not the answer."

Attached is a full text of the statement, as prepared for delivery. For a more detailed explanation

why oil and gas tax treatments are not unique or "subsidies," click here.

API represents more than 470 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $85 million in revenue to our government every day, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

SOURCE American Petroleum Institute