Looks like Obama and company is talking once again about raising taxes on those evil oil companies and make them pay "Their fair share" by taking away tax incentives to explore and develop more domestic sources of energy....
President Obama's 2011 budget would do away with $4 billion in accelerated depreciation, depletion allowances and other long-established incentives for oil and gas drilling. Sen. Robert Menendez, D-N.J., has introduced a bill that would remove another $20 billion of industry "tax breaks."
According to the American Petroleum Institute, over the next decade tax hikes on the industry could exceed $80 billion. But both the president and Sen. Menendez argue that because profits are so high, removing these tax preferences will not be a disincentive to robust domestic production. They're dead wrong.
Without question, hiking the tax burden on America's oil and gas companies will mean less, not more, domestic energy production. And though the "enemy" is Big Oil, according to the Independent Petroleum Association these tax increases will fall disproportionately on small drilling companies and could potentially reduce domestic oil and gas production by 20% to 40%.