AXPC is strongly opposed to the book minimum tax in the Schumer-Manchin Inflation Reduction Act that the Senate is expected to consider soon. This $313 billion tax increase will fall heavily on American oil and gas producers, who support about 3.2 million US workers and contribute greatly to US economic growth and energy security.
While the Inflation Reduction Act makes complicated changes to the tax code, the outcome for Americans will be straightforward: higher taxes and higher energy prices – and less investment and fewer jobs during a recession and record high inflation.
According to the non-partisan Joint Committee on Taxation (JCT), 49.7 percent of the book minimum tax would fall on manufacturers, hitting American companies with a $52.6 billion tax increase in 2023 alone. Ultimately, this tax would be passed down to consumers through higher prices. Another estimate from the National Association of Manufacturers (NAM) found that the book minimum tax would eliminate over 218,000 jobs and reduce GDP by $68 billion.
Like many other American industries, oil and natural gas companies benefit from accelerated US cost recovery in the tax code which encourages domestic investment and job creation for capital intensive industries.
As Congress considers the Inflation Reduction Act, AXPC urges members to eliminate the harmful book minimum tax due to the clear and direct harm it will cause to Americans.