What would happen? Depending on which expensing provisions Obama repealed, he would likely get about $5 billion a year in taxes hikes to avert a portion of the sequester – a tiny portion of the sequester. With the sequester slated to reduce government spending by $85 billion this year, replacing $5 billion in cuts with new oil and gas revenue would prevent six percent of the sequester from going into effect. That’s right, six percent. Obama’s purported solution doesn’t even solve the problem he created!
Continuing our hypothetical example where Obama raises taxes on oil and natural gas producers to avoid spending cuts, let’s examine how these punitive tax increases impact the industry responsible for over 9 million American jobs. Economists at Wood-Mackenzie estimate that repealing a handful of tax provisions would kill 170,000 domestic jobs in 2014 and an additional 78,000 jobs over the next decade.
Job losses resulting from Obama’s tax hikes would be borne by blue-collar workers as domestic oil and natural gas exploration declined. Manufacturers and other industries that supply oil and natural gas producers would also feel Obama’s tax hikes. Constantly lobbying for tax increases that would cripple the private sector, it is clear that Obama values government workers more than private sector, productive workers. What Obama is really proposing is private sector layoffs in exchange for more bureaucrats.