Moratorium, Taxes About Punishment Not Solutions

Posted by on Jul 27, 2010 in Blog, Home | 0 comments

Dr. Joseph Mason, Professor of Finance at LSU testified before the Senate Small Business Committee today to inform our nation’s leaders of the devastating of $2.7 billion economic impact of the Obama administration’s proposed moratorium.  Dr. Mason’s testimony provided insight into his recent analysis of the cost of the moratorium, as well as analysis of how proposed changes to domestic tax policy could further devastate the gulf economy and undermine America’s energy security.

The conclusion:  the current moratorium is more about settling a score with the energy industry than it is about protecting the communities in the Gulf or preventing another tragedy such as the BP disaster.  Dr. Mason discussed this very issue this morning on CNBC’s Squawk Box, stating:  “It’s industry hostility; now that the administration is done with financial services [reform] they are targeting that hostility toward the energy sector and oil and gas.” Watch the full interview here:

Dr. Mason’s sentiments were echoed by Senator Mary Landrieu during the hearing as she pointed out that BP, the company responsible for the current disaster, is the only organization still drilling in the Gulf today.

Read Dr. Mason’s full testimony here, or learn more about the 12,000 jobs and $707 million in lost wages resulting from the moratorium, by reading his study here.

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