Obama lied to Americans about lowering their taxes
March 8, 2009
To the Editor:
During the campaign and again in presenting his budget, Obama pointed his finger at us and said that no one who earned under $250,000 would pay higher taxes. The details of his budget tell a different story. Taxes for about 10 million Americans that have oil or gas production income will go up 15 percent. His new energy program plans to raise taxes on oil income by eliminating the depletion allowance for oil and gas production.
What is the depletion allowance? It is a tax deduction for oil and gas wells similar to the depreciation allowance that all businesses receive for capital expenditures. Oil and gas wells are a depleting asset. Production drops every year as the well pressure declines. This tax depletion for oil and gas wells has been on the books for more than 50 years as an attempt to make tax breaks similar for oil and gas investments as for other capital investment in factories, trucks, and other equipment used to run a business.
Who gets production income from oil and gas wells? They are farmers and ranchers that have producing wells on their property. They are individual investors that have risked their money to find oil and gas production. They are hard working oil and gas employees that earn a small interest in a well as an incentive in their job.
These Americans made these investments in time or money under the depletion tax code and now Obama and the Democrats have singled out this source of income as tarnished and different than your income and should be taxed at a higher rate. How would you feel if you had a trucking business and the government changed the tax law from a five year write off for new trucks to no write off at all? Would you think that is fair? NO.
What unpopular business will the government single out next year for higher taxes? Will it be yours? Are we going to tax doctors more than dentists, lawyers more than accountants, plumbers more than welders? It is capricious and totally unfair to single out one group of businessmen to tax more than another. Ninety percent of the Americans that receive oil and gas production earn less that $250,000 and Obama lied to them.
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If you study the proposed budget you will find other proposals that will directly or indirectly increase your taxes. The most obvious is the cap and trade for carbon emissions. In Obama’s own words he said that this proposal would cause electricity rates to skyrocket, an indirect tax on all Americans.
Call or write your congressman and senators and tell them to vote no on Obama’s budget. Have we gone totally nuts? The Obama budget calls for a federal deficit of $1.75 trillion in his first year. That is just a little less than the entire Bush budget deficit of $1.9 trillion over eight years. Obama’s budget is an attempt to federalize the U.S. economy, destroy private enterprise jobs and will create a deficit that our children and grand children will be paying off for the rest of their lives.
Tim T. Schowalter