This afternoon, Blue Dog Rep. Dan Boren expanded on his earlier criticism for the President’s energy policies by claiming that, if the President is successful in raising taxes on oil and gas producers, it will cost states “thousands of jobs.” Rep. Boren also noted that the President “has been misleading the public” in many of his calls for higher taxes.
Interview With Rep. Dan Boren
Fox News’ “Your World w/ Cavuto”
April 27, 2011
VARNEY: “Yes, a Democrat, telling the President he is putting thousands of jobs on the line. Congressman Dan Boren of Oklahoma joins me now. Congressman, you are a Democrat, you seem to oppose the President on this. Are you telling me that if you take those tax breaks away from the oil companies, your state, Oklahoma, loses jobs? Are you telling me that flat out?”
BOREN: “We lose thousands of jobs not only in Oklahoma, Texas, Louisiana, Arkansas, and places like Pennsylvania, New York, West Virginia. These aren’t just traditional oil and gas producing states. And these tax breaks do not go to the big, major oil companies. They go to small independent companies, like we have in Oklahoma. Did you know a vast majority of the production in the United States comes from small independent oil and gas companies? And the new rigs that are drilling right now in the United States, they are not Exxon Mobiles of the world. They are the Devons, the Chesapeakes and even smaller companies that are based in Oklahoma that are employing, by the way, a lot of Democrats, blue-collar jobs. And the President needs to understand that.”
VARNEY: “But those smaller oil companies, the Devons that you talk about, the drillers, don’t they get any of these tax breaks? Because you’ve got the big oil company reporting billions and billions of dollars in profits this week, literally, and a lot of people are saying come on you can afford $4 billion give away in your tax breaks. You’ve got a cushion here of huge profits. Surely you can absorb the tax break loss and keep drilling.”
BOREN: “Well, there are two things. One is the depletion allowance. The major oil companies are barred from using that tax incentive. They can’t do it. It is against the law. That is one of the things the President has been misleading the public on. Second is the intangible drilling costs. That is basically an incentive to drill in the United States. If you take that away, 30 to 40 percent of the drilling right now in the United States will go away.” …