VIDEO: Shale Development Boosting American Tax Revenues
Shale development continues to provide an array of benefits for American consumers from lower energy costs to new jobs. But this April there is one more thing to thank shale for: The boost in tax revenues provided by oil and natural gas.
According to a recent report from IHS CERA, shale development and related activities were responsible for billions of dollars in government revenues – not to mention jobs and investment throughout the American economy. From the report:
“Unconventional oil and gas activity and energy-related chemical manufacturing, directly or indirectly, were responsible for 2.1 million jobs, nearly $284 billion in value added to GDP and more than $74 billion in government tax revenues in 2012. By 2025, these contributions are expected to grow to 3.9 million jobs, $533 billion (constant 2012 $) in value added to GDP, and $138 billion (constant 2012 $) in government revenues.”
In Ohio, a recent Cleveland State University report found that sales tax receipt in counties with shale development were experiencing the fastest growth in the state. As EID has reported before, in 2011 the total sales tax apportionment for just five Ohio counties — Carroll, Harrison, Noble, Guernsey and Belmont — was more than $15.5 million. But by 2013, revenue jumped nearly 50 percent to $22.9 million.Over in Texas, some shale counties are seeing sales tax increases of “over 500 percent year over year.” According to the Texas Taxpayers and Research Association, “Texas is on a course to deposit over $20 billion into the Rainy Day Fund — an average of over $3 billion annually, setting new records each year” thanks in large part to this development.
These revenues are helping to support communities and states, providing funding for much needed infrastructure like new roads and bridges, but also for schools and hospitals, among many other services. Check out EID’s newest video — Shale Development Boosting American Tax Revenues — and learn more about how shale development is providing a boost to the American economy this tax season.