New Study of the "Gang of Ten" Energy Bill's Section 199 Repeal
We released my latest study today, which explores the tax burden and economic impact of the proposed “Gang of Ten” energy bill currently working its way through Congress.
The energy bill proposes roughly $84 billion in new federal spending on conservation and alternative energy programs, to be funded partly by corporate income tax changes affecting the oil and gas industry. My study explores the tax side of the proposal, estimating how the tax burden will be split between labor and capital, and how these burdens will impact the broader U.S. economy.
You can download a draft of the study in the “Publications” section at the new Chamberlain Economics, L.L.C. website. Here’s the abstract:
The recently released “Gang of Ten” energy proposal includes revenue offsets that would exclude domestic oil and gas companies from the Section 199 deduction for domestic production activity. Using a simple input-output model we estimate the state-by-state impact of this proposal on tax burdens, employment, household earnings and economic output. We estimate the proposal will increase corporate tax burdens by approximately $13.57 billion over ten years, 44 percent of which will fall on households in the petroleum manufacturing states of Texas, California and Louisiana. Using RIMS II multipliers we estimate the proposal will reduce U.S. employment by roughly 637,000 jobs over ten years, reduce household earnings by $34.97 billion, and reduce total U.S. economic output by $185.95 billion.
A draft of the full study is available here.
(Note: For the official published version of the study from the Institute for Energy Research see here.)
Posted by Andrew on Wednesday September 10, 2008 | Feedback?
