Energy group hits the airwaves to combat industry tax increases

The American Petroleum Institute on Tuesday began running ads in opposition of a decision by House Ways and Means Chairman Sandy Levin (D-Mich.) to pay for his green energy tax bill by rescinding several tax breaks benefiting the oil and gas industry. The ads are slated to run in 10 states and depict the tax increases as job killers. 

The 15- and 30-second ads will attempt to show voters that increasing taxes on an industry that supports 9.2 million jobs and represents 7.5 percent of the country’s GDP will have a devastating effect on the economic rebound. 

“The ads are part of the national debate on energy and tax policy,” said API President and CEO Jack Gerard in prepared remarks. “We hope they will help ensure decisions affecting our economic and energy security are not made in a vacuum or based on incomplete information.”

It remains unclear if Levin will host a markup on his bill. Congressional sources told The Hill that Speaker Nancy Pelosi (D-Calif.) will be the one who decides if the legislation will be marked up.

The so-called tax extenders bill that failed to pass the Senate was not subjected to a markup and contained several controversial tax increases. One increase aimed at S corporations taxed retained earnings. Some lawmakers have pointed to that measure and strongly hinted that had the legislation gone through the markup process it might have passed the Senate. 

The API ads will run in Colorado, Michigan, North Carolina, North Dakota, Pennsylvania, Virginia, Maine, Missouri, Ohio, and West Virginia. 

“Americans have historically been suspicious of taxes on the industry that produces most of the energy they consume,” Gerard said. “They deserve to be informed about new proposals that would increase those taxes by many billions of dollars a year.”