Impact of Tax Policy on Gasoline Prices
Energy Industry Benefits and Effects on the Market
This memorandum was written in response to a request from Senate Majority Leader Harry Reid (NV-D) for an analysis of the extent to which proposed tax changes in the oil industry would be likely to affect domestic gasoline prices. The specific tax proposals requested to be considered were the Section 199 deduction for domestic production, the repeal of the expensing of intangible drilling costs provision, and the dual capacity taxpayer rules. Background The oil and natural gas industries benefit from existing tax policies. These provisions of the tax code, which many identify as tax subsidies, reduce the tax liability of…
