LMOGA President Chris John: House Tax Plan Will Hurt Economy

05 07, 2013 by LMOGA

Louisiana Mid-Continent Oil and Gas Association is seriously concerned with the “Deficit Reduction Plan” being advanced by some members of the Louisiana House of Representatives as a solution to the budget stalemate.

While the intentions of some fiscal conservatives and others trying to find a way to end recurring deficits may be noble, the result is a hurried and damaging proposal that will severely impact the state’s manufacturing industries. From the numbers included in the plan, we estimate the tax increase to the oil and gas industry to be nearly $200 million. Tax increases in the plan for all Louisiana businesses are estimated at $315 million.

“Stunting investment in Louisiana manufacturing and business with a $315 million tax increase is not the way to grow the Louisiana economy and solve the state’s budget problems,” said LMOGA President Chris John. “Prior to the legislative session, it was estimated the state was poised to see $70 billion in new manufacturing investment, bringing with it thousands of high-paying jobs. This extraordinary tax increase will surely slow down and invite a reappraisal of those announced projects.”

“The oil and gas industry in Louisiana is a $77 billion economic engine for the state that creates over 300,000 jobs for our residents,” said John. “The proposed tax increase being presented to the House would hinder economic growth and negatively impact Louisiana’s oil and gas industry as we compete domestically and globally to fuel America’s energy future. We cannot allow this budget proposal to put a damper on the bright future for Louisiana’s energy industry.”