LSU professor says removing oil, gas tax incentives would hurt U.S. economy

Joseph Mason, an LSU finance professor, has released a study that says repealing tax deductions for the oil and gas industry could hurt the U.S. economy. Mason says that several proposals being discussed by President Barack Obama would be “grossly counterproductive toward the goal of increasing federal revenues.” While removing the deduction would generate $30 billion in tax revenue, it would cause a net fiscal loss of $53.5 billion in revenue. Mason says it would also result in the loss of 155,000 jobs. Mason, who analyzed the tax changes for the American Energy Alliance, a nonprofit that lobbies for the energy industry, says in contrast, expanding oil drilling would generate an additional $55 billion in annual federal tax revenue in the long run. Mason did a similar report last fall that discussed the impacts of an Obama administration plan to slash tax breaks for the oil and gas industry to pay for small business tax credits.