Ground Truth Trekking

Tax revenue

The Oil Production Tax has been costing us money, and is predicted to be negative or near-zero into the foreseeable future

The Oil Production Tax has been costing us money, and is predicted to be negative or near-zero into the foreseeable future

Actual and predicted production tax revenue, and theoretical revenue with a 12.5% flat tax. 

With a flat tax on wellhead value, we would make around a billion dollars more each year than we make under the current MAPA scheme. If the state wished to maximize revenue and minimize risk, it could combine the progressivity of ACES with the reliability of a gross value tax. It would abolish the tax credits, tax on gross wellhead value, and make that tax rate progressive with price.

 

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By Bretwood HigmanGround Truth Trekking

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