Present all the facts
This is in response to the Nov. 3 article, "Pitch to tax oil production back again ... with a twist."
The article reported that politicians have revived the idea of taxing California oil production, promising windfall revenues and consistency with other oil-producing states. However, the article did not mention that California's legislature and voters have consistently rejected such proposals for good reasons, despite misinformation from proponents.
A favorite rationalization for this multi-billion dollar tax is that other oil-producing states have a severance tax, but California doesn't. While technically accurate, this assertion ignores a key fact.
The billions of dollars California oil producers already pay in property taxes, corporate income taxes, royalties and environmental fees put our state's aggregate oil taxation on par with severance taxes collected elsewhere. Adopting the proposed tax would make California oil production the nation's most heavily taxed.
As for the theory that there would be little or no impact on local property tax revenues, readers should consider the Kern County Assessor's disclaimer that this applies only if oil prices stay high. That's important, since economists and government agencies agree that oil prices fluctuate continuously.
It's impossible to count on oil prices remaining stable and high for purposes of government revenue projections.
The prospect of job losses and more foreign oil imports should not be taken lightly either. A severance tax would lead to the elimination of 9,850 California jobs and lower in-state oil production. Californians deserve all the facts.
JOE SPARANO
President, Western States Petroleum Association
Sacramento
