At a meeting of the Kansas Independent Oil and Gas Association Rep. Tim Huelskamp argued against the closing of multiple loopholes currently available to energy producers. He stated his fears that the newly-appointed congressional super committee will target current tax breaks for oil and gas producers in trimming the nation’s ailing budget. In the end, he defended tax loopholes utilized by such industries as reasonable means of conducting business and staying comptetetive.
“It’s not a loophole,” he said alongside fellow Republican and U.S. Representative Lynn Jenkins of Topeka. “It’s a way of doing business.”
Of particular concern to oil and gas producers are provisions that allow energy producers to write off drilling costs from the current fiscal year. If those loopholes were cut it could wind up costing oil and gas companies millions.
The duo vowed to fight what they see as an administration set on keeping producers from reaching their potential through excessive regulations.
They also told their audience that closing loopholes and making modest cuts to unpopular programs cannot heal the country’s financial woes. Instead, they argued significant cuts to so-called entitlement programs were needed to bring the budget back from the brink.