Tax hike unlikely to affect gas, heating prices, report says
Mike Saccone, The Daily Sentinel
Friday, July 25, 2008
A proposal aimed at eliminating a sizable tax credit for energy companies in Colorado will have little effect on gasoline and natural gas prices, according to an analysis the Sonoran Institute released Thursday.
The report said Colorado’s contribution to global crude oil and regional natural gas markets is so small that any additional costs Colorado drillers incur would minimally affect the commodities’ prices.
The ad valorem tax credit voters could be asked to toss allows energy companies to subtract 87.5 percent of its property tax bills from the mineral taxes they owe the state. The tax credit has historically allowed energy companies to cancel out large portions of their severance tax bills.
A Smarter Colorado, the campaign supporting the ballot measure, estimates the tax credit could translate into more than $260 million of new money for low-income scholarships, road projects and a handful of other programs.
For the rest of this story, visit the Daily Sentinel by clicking here.
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July 25, 2008
10:16 a.m.
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zippy66 writes:
So, these oil and gas companies are just going to eat the cost? Riiiight.
This study isn't based on any facts at all. It's just speculation.
July 25, 2008
10:37 a.m.
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youngman writes:
Yeah..whos going to pay it? We are......and these guys got paid for this study I assume.
July 25, 2008
10:44 a.m.
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ItsJustme writes:
Economics 101 - Corporations pay no taxes. They merely pass them on in the form of higher prices to the consumer. Headline should read "Tax Hike definitely will be passed on in the form of higher gas, heating prices"
July 25, 2008
10:44 a.m.
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dawnmarie01 writes:
Oil companies should be taxed higher and the tax revenue invested in public transporation. That might help lower gas prices!
July 26, 2008
7:13 a.m.
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polyglot writes:
Should we be surprised that an organization that is in favor of land preservation and probably stands to gain from the wilderness preservation dollars that would be collected generates a study saying there will be no affect on prices. Econ 101 says that if you tax something you will get less of it. In this case that means less production which means less supply to meet demand which means prices increase. Come on folks lets get serious.
July 26, 2008
1:42 p.m.
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jbowen43 writes:
We all pay taxes so why shouldn't the oil and gas industry?
This industry could stand some more regulation.
In fact they could stand some price controls.
The nature conservancy is a not-for-profit organization.
July 27, 2008
9:02 p.m.
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rockiesfan writes:
Come one. These companies are making billions of dollars in profits, and gas is $4 a gallon. Maybe 30 years ago, when gas was $10 a barrel, it made sense to help them out. For one, I'd rather end preferential treatment for oil and gas companies and make them pay their fair share, just like every other industry. Why should they get a tax subisdy no one else gets?? I say let them pay their fair share and let our kids get a good education.