The oil and natural-gas industry is taking issue with a tax-reform proposal put forward by Senate Finance Committee Chairman Max Baucus, D-Mont.
The proposal, which Baucus released as a discussion draft last month, would extend the cost recovery period for tax-deductible operating and labor costs incurred by the industry, including drilling expenses. It would also put an end to commonly used accounting practices such as the last-in, first-out method of accounting, which serves to determine a company’s tax liability.
In a letter to Baucus on Friday, industry stakeholders say these changes could spell disaster for them. Specifically, the letter states that if the changes go through, they could slow industry growth and discourage private investment in oil and natural-gas production.
“Our industry is posed to make even greater capital investments in domestic energy projects all across the United States, generating jobs and revenues for local communities throughout the country,” the letter states. “We must have a tax code that not only encourages growth in such investments, but allows us to continue our track record of creating jobs, growing the economy, and strengthening our energy security.”
Signatories include Jack Gerard, president and CEO of the American Petroleum Institute, the largest trade association for the oil and gas industry, and Martin Durbin, president and CEO of America’s Natural Gas Alliance, a major trade group representing independent natural-gas exploration and production companies.
Read the full letter here.
What We're Following See More »
"The Trump administration on Wednesday formally withdrew Obama administration rules granting transgender individuals access to the sex-segregated facilities of their choice, including bathrooms." In an official letter to the civil-rights divisions of the Justice and Education departments, the administration wrote that it prefers to let states set the course on the issue, and also that the Obama-era rules don't “contain extensive legal analysis or explain how the position is consistent with the express language of Title IX, nor did they undergo any formal public process.”
Congress will need to vote on Donald Trump's pick of Lt. General H.R. McMaster to be his next national security adviser, but not for the reason you think. The position of NSA doesn't require Senate approval, but since McMaster currently holds a three-star military position, Congress will need to vote to allow him to keep his position instead of forcing him to drop one star and become a Major General, which could potentially affect his pension.
"The Senate Intelligence Committee is seeking to ensure that records related to Russia’s alleged intervention in the 2016 U.S. elections are preserved as it begins investigating that country’s ties to the Trump team. The panel sent more than a dozen letters to 'organizations, agencies and officials' on Friday, asking them to preserve materials related to the congressional investigation, according to a Senate aide, who was not authorized to comment publicly. The Senate Intelligence Committee is spearheading the most comprehensive probe on Capitol Hill of Russia’s alleged activities in the elections."