Well sort of.
I only recently realized the possible significance of the current administration’s proposed budget. With its $30 billion in new taxes on the oil and gas industry.
Now tell me. Which states would this affect the most? In which states is the oil and gas industry a particularly important part of the economy?
- Texas
- Alaska
- Louisiana
Out of morbid curiosity is there any political significance to these states?
- Texas – Presidents Bush I and Bush II and a state that votes strongly Republican in national elections
- Alaska – Vice-presidential candidate Governor Sarah Palin and a state that…
- Louisiana – Governor Bobby Jindal (who delivered the Republican response to President Obama’s speech and a rising star in the Republican party and is one of the few governors who wants to turn down some of the economic “stimulus” money) and a state that…
Of course this could all be coincidence. Surely President Obama is not trying to drive these very “red” states into economic submission.
What effect would these $30 billion in new taxes have on Louisiana specifically? According to Bayou Buzz:
For Louisiana, investment in oil and gas would likely drop by $6 billion a year, the State General Fund would drop by another $2.3 billion a year, and unemployment would probably exceed 10 percent.
Oh my.
Did you know that Louisiana is the only state in the nation that saw an increase in non-farming jobs last year? (Despite Vice-president Biden’s ridiculous claim we are losing a couple hundred jobs per day – someone hand the man a functioning brain.) I do not make light of the nation’s overall economic downturn but here in Louisiana it has not been that bad. It is starting to become bad for reasons that are not entirely clear but may have to do more with local mistakes than with the national economy. (Huge cuts being made throughout the Louisiana State University system.) But if the Obama administration has its way we could go from being one of the most economically healthy states to one of the worst – and not because of anything our state did. Our state economy already took a nice hit when President Obama overturned the Bush administration’s position on offshore oil exploration and production. Think of all the jobs that would have been created! I mean is not the ostensible goal of the Obama administration to stimulate the economy and see jobs not just saved but even created?
Readers of this blog know that I do care about the environment and alternative forms of energy. Where I depart somewhat from more doctrinaire environmentalism is (a) nuclear energy needs to be a huge part of our non-petroleum future and (b) we will always no matter what still need petroleum (ask any science-fiction writer) and in the meantime strongly support carefully expanding oil exploration and production in the United States and finally (c) believe the best way to promote alternative energy is through (tax) credits and incentives through encouraging their development and use rather than taxing banning and punishing oil and gas based energy (carrots rather than sticks).*
Does the rest of the United States have no appreciation for where its oil and gas comes from? Remember what happened to the price of gas after Hurricanes Katrina and Rita and (to a much lesser extent) Gustav? Those were natural disasters over which we had little control. Why does the Obama administration (and those American citizens who supports its policies) want to inflict economic disaster on oil and gas producing states?
H/T Bayou Buzz via Old River Road via Red Stick Rant.
*Interesting tidbit. During the 1970’s there was a short period when the federal government offered a big tax break to homes that converted to solar (water heating). We were one of the very first and few to make this change. Until this year you could use (for example) Google to look at our old house in Massachusetts and still see the solar panel. I was very proud of my parents and of our house. (Today I checked and do not see the panel. Did they remove it?!? Maybe it wore out.)
