Friday, July 1, 2011

Higher Energy Taxes Hurt Retirement Accounts

August 20, 2010 by ShawnMillerick  
Filed under Energy & Environment

Reading about the effect on British pensioners of the Obama Administration’s attacks on BP got me thinking. The harsh and ongoing criticism of BP for the Gulf Oil Spill and the slow-moving cleanup efforts – and the prospect of hefty fines — have apparently had a serious impact on the value of BP stock.

That stock is a key component of the pensioners’ investment portfolios, and its decline in value has serious consequences for their financial security in their retirement years.

Attacks on the oil industry in general, proposals for new taxes on oil production, and a moratorium on offshore drilling all spell trouble for Americans in retirement as well.

That’s because our mutual funds, IRAs, 401Ks, and other retirement accounts all invest in oil and natural gas companies. Over 55 million U.S. households own a mutual fund and over 45 million U.S. households invest in an IRA, 401K or other personal retirement account; and each of these funds invest in oil and natural gas companies.
Efforts by the White House and Congress to “punish” BP and the oil industry will ultimately penalize the senior citizens and millions of American workers, including teachers, soldiers, police and fire personnel and office personnel, whose retirement accounts benefit from oil and gas investments.

Personally, I can’t see the sense or fairness of this. Higher taxes on oil and gas production are not going to have any positive effect. All they’re going to do is reduce industry profits and stockholder dividends, make it harder for older Americans to provide for themselves, and make all of us more dependent on the federal government.

Maybe that’s the whole idea?


One Response to “Higher Energy Taxes Hurt Retirement Accounts”
  1. mode20100 says:

    A+ would read again

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