If our elected officials intend to keep their promises to protect the average American citizen from changes in the tax policy, I hope they realize the ripple effect their actions will have if certain tax proposals are passed.
If you recall, most of the tax incentives were originally provided by congress to encourage a certain behavior, namely to produce more domestic energy for this country and free us from a dependence on foreign oil. Louisiana is the No. 2 producer of propane in the United States. Now that the incentives are working, congress proposes to change the game.
Some in Congress might be tempted, for example, to hit "Big Oil" with tax increases. Raising taxes on oil and gas companies would hurt thousands of small businesses in Louisiana and across the country that aren't making huge profits. These business would still be hit with higher taxes. Any increase in taxes incurred by these business would still be hit with higher taxes. Any increase in taxes incurred by this businesses will be passed on to the customer in the form of higher prices at the pump. This will also cause higher rates for utility bills at home. Even your electric rates will be higher, as a considerable percentage of our electrical production comes form natural gas as well.
The effect of these tax increases will go father than "Big Oil." Because propane is a bi-product of oil and gas, any tax increase would affect our company and other propane businesses in our state. Louisiana needs small businesses like ours to move our economy forward and to maintain jobs in this state.
Beware the unintended consequences. Taking away tax incentives on oil and gas will hurt all of us here in Louisiana.
Cordill Propane Services