from Platts:Washington (Platts)--25Aug2009
industry by another $4.5 billion over the next decade, bringing the total to
nearly $36 billion, according to its mid-year budget review released Tuesday.
In addition, the White House estimated that the budget deficit would
increase to $1.5 trillion in fiscal 2010 and to a $9 trillion deficit from
2010 to 2019. It also estimated that the fiscal 2009 deficit would total $1.58
trillion. The large deficits for this year and next are a result of the $787
billion economic stimulus bill which passed in February, the White House said.
The jump in oil taxes from the previous estimates, which the Office of
Management and Budget put out in May, is largely made up of increases in two
key areas.
Repeals for expensing of intangible drilling costs more than doubled to
nearly $7 billion from 2010 to 2019, representing an increase of $3.65 billion
from the May estimates.
The Obama administration also aims to repeal percentage depletion, which
lets companies recover capital investment over time, for oil and natural gas
wells further, increasing estimates from May by $784 million. The May total
was $8.25 billion over the next decade while the estimates released Tuesday
were $9.04 billion.
The White House aims to have all of the oil and gas tax increases in
place beginning fiscal 2011.
OMB also kept in place revenue expected to be raised from a national
cap-and-trade system for greenhouse gas emissions currently under
consideration. The total released Tuesday included $627 billion in "climate
revenue" from 2012 to 2019, up $3 billion from the May budget estimate. The
original budget outline President Barack Obama released in February contained
$646 billion in climate revenue.
Some $15 billion annually will go toward developing low-carbon
technologies, while between $62 billion and $65 billion will go toward the
"making work pay" tax credit designed to give a tax break for low- and
middle-income consumers.
Tuesday, August 25, 2009
Increase in Oil Taxes
