Economists Agree: Higher Taxes Will Harm Economy

By September 28, 2010Economy, Energy, Taxation

The American Petroleum Institute today hosted a panel discussion with three economists, Dave Crowe of the National Association of Home Builders (NAHB), John Felmy of API and David Huether of the National Association of Manufacturers (NAM).

API’s Jane Van Ryan has a report at the EnergyTomorrow blog, “Economists: Higher Taxes Could Harm Economic Recover.” Excerpt:

David Huether of NAM predicted that the “economy will be stuck in low gear for the second half of this year,” citing low consumer confidence and uncertainty over government policies. Although U.S. exports are up and 145,000 jobs were created largely in the first four months of 2010, economic growth is “lackluster.” Huether also cautioned that since manufacturers compete globally, “The last thing the government should do is add costs, raise taxes.”

API’s John Felmy also warned about government actions. “Policies are being proposed that drain money from the industry,” he said, referring to the administration’s plan to increase taxes on the oil and natural gas industry by $80 billion. John also said the failure to pass tax cut extensions could have a negative impact on small oil producers whose wells produce 2 barrels a day or less and provide jobs for about 125,000 workers. He said higher taxes, as well as the de facto offshore moratorium, could adversely impact domestic oil and natural gas supplies, energy security and job creation.

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