Job creators enable better American lives
Between now and Election Day, you will be hearing a lot from Washington interest groups, Capitol Hill politicians and President Obama, demanding that Congress “repeal tax breaks for Big Oil” or “make the oil companies pay their fair share.”
But just because a poll-tested message sounds good in a 30-second ad does not make it true. Nor does it translate into constructive pro-growth policies for the American people and our economic recovery. For example, according to a recent report from Standard & Poor’s ResearchInsight, the effective tax rate for the oil and natural gas industry over the past five years has averaged about 44 percent. Meanwhile, according to their own federal filings, Apple last year paid an effective tax rate of around 24 percent and General Electric paid almost nothing.
At a time when businesses can choose to locate almost anywhere in the world, development of domestic energy resources, by definition, creates jobs right here at home. The job-creation potential of the energy sector, however, is not limited to those in oil and gas extraction. It also means more pipeline construction and the expansion of petrochemical plants, which create both construction jobs and permanent manufacturing jobs. Another example is the increased supply of natural gas in recent years, which has sharply lowered its price and thus incentivized manufacturers, who use it as feedstock, to bring their operations and jobs back home from overseas.