Louisiana State Banking Chairman and well-regarded economist Joseph Mason released the following statement ahead of the President’s job creation proposals to be released in Cleveland later today:
Proposals currently under consideration as PayGo for costly new ‘stimulus’ bills in Washington will absolutely devastate economic recovery and overall domestic job creation. Under the guise of ‘making Big Oil pay,’ plans to increase energy taxes by repealing ‘dual capacity’ and section 199 of the U.S. tax code – a manufacturer’s credit – will actually harm small businesses and American families.
I am putting the final touches on a report I’m planning to release next week, but the preliminary numbers are incredibly grim with more than 150,000 people losing their jobs over the next decade and more than a quarter trillion dollars in lost economic activity if these tax hikes go into effect.
Most disturbingly, these tax increases will further damage the Gulf region. Already we are halfway through the six month moratorium on drilling with predicted job losses both in the Gulf and across the nation continuing to rise. This number will only climb as reserve funds are depleted and tasks not associated with drilling that have kept employees busy in the short term, like regular maintenance, are completed. Unless the moratorium is lifted, we expect to see spikes in unemployment in the Gulf region as we move into the holiday season.