Posted on 11/22/2006 7:27:11 AM PST by Red Badger
House Democrats are targeting billions of dollars in oil company tax breaks for quick repeal next year. A broader energy proposal that would boost alternative energy sources and conservation is expected to be put off until later.
Hot-button issues such as a tax on the oil industry's windfall profits or sharp increases in automobile fuel economy probably will not gain much ground given the narrow Democratic majorities in the House and Senate.
Incoming House Speaker Nancy Pelosi, in an outline of priorities over the first 100 hours of the next Congress in January, promises to begin a move toward greater energy independence "by rolling back the multibillion dollar subsidies for Big Oil."
Yet the energy plan being assembled by Pelosi's aides for the initial round of legislation is less ambitious than her pronouncement might suggest.
For the most part, the tax benefits are ones that lawmakers talked of repealing this year when Congress struggled to respond to the public outcry over soaring summer fuel prices and oil companies' huge profits.
Topping the list for repeal are:
_Tax breaks for refinery expansion and for geological studies to help oil exploration.
_A measure passed two years ago primarily to promote domestic manufacturing. It allows oil companies to take a tax credit if they chose to drill in this country instead of going abroad.
Democrats say neither tax benefit should be needed for an industry reaping large profits at today's high crude oil prices.
Over 10 years, the production tax credit saves oil companies $5 billion and the refinery measure and exploration credit a total of about $1.4 billion, according to Congressional Budget Office estimates.
Other oil tax breaks probably will go unchallenged. That includes some passed by Congress only a year ago and others already targeted for repeal this year.
For example, House Democrats have no plans to change a provision that allows oil companies to avoid billions of dollars in taxes by the way they calculate inventories. The Senate this year agreed to a repeal; the effort was abandoned amid House GOP opposition and an uproar from other industries that also benefit from the tax language.
House Democrats also are shying away from tampering with more than $1 billion worth of oil- and gas-related tax breaks, enacted last year. These breaks largely benefit small companies or gas utilities rather than the major oil companies now awash in cash.
Nevertheless, the House and Senate are expected to push legislation early to force oil companies to renegotiate flawed offshore drilling leases that have allowed the companies to avoid paying federal royalties. The loss eventually could cost the government $10 billion, according to some congressional estimates.
Other prime targets of House and Senate Democrats include:
_Alleged price gouging. Proposals to create a federal price gouging law for gasoline and other fuels probably will move quickly.
_More incentives and mandates to expand the use of ethanol and biodiesel as a substitute for gasoline. Requiring oil companies to phase in retail pumps that deliver fuel that is 85 percent ethanol.
_Requiring power companies to produce a percentage of their electricity from renewable energy sources such as wind and solar power. Such a measure is a priority of Sen. Jeff Bingaman, D-N.M., incoming chairman of the Senate Energy and Natural Resources Committee.
_Extending energy efficiency tax credits approved by Congress last year. Most are scheduled to expire at the end of next year.
_Expanding a tax break for buyers of gas-electric hybrid cars and offering more incentives for automakers to build greater numbers of the vehicles.
Rep. John Dingell, D-Mich., who will take over as chairman of the House Energy and Commerce Committee, said he plans hearings on legislation to spur further production and distribution of ethanol and biodiesel, and promote conservation.
But he suggested it will take time to produce legislation. "The process is a long one. It takes hearings, it takes fact finding," said Dingell in a telephone interview.
On the Senate side, Bingaman probably will avoid writing a single broad energy bill, preferring to push through specific legislation. Among Bingaman's other goals are new incentives to spur renewable energy development and more tax breaks for conservation.
Last spring, Sen. Charles Schumer, D-N.Y., said if the country is to reduce its addiction to oil and high energy prices it needs a "crash program" to develop more alternative energy sources, dramatically increase conservation and examine "whether or not we should break up the big oil companies."
Next year, Schumer assumes the No. 3 leadership position among Senate Democrats and will be one of the party's top strategists.
Yeah, we definitely don't want anything that might reduce our dependance on terrorist oil.
If I didn't know any better, I'd think this was written for Scrappleface.........
No, Only Republicans get the "blame". Dems wil be hailed for "trying to hold the line"..........
But wait, I thought oil only needed the free market, and only EEEVILL ethanol gets tax breaks...
In order for (D) to govern, there must be a continuing crisis of some sort. A boogeyman to shake in front of the electorate and say, "We will save you from him!" If they do exactly as they plan, they will either destroy the country's economy or themselves, or both.......
Who needs Scrappleface when you have Pelosi?
So.....are the "tax breaks" that're gonna get rolled back or "subsidies" that're gonna get rolled back?
I'm guessing tax breaks.
Libs.. never met a tax break they didn't hate... never met a tax they din't like.
The government already makes twice as much off of a gallon of gas than the oil company does. Guess who pays at the pumps when the rats raise their taxes.
Need to attend 'Profit Margin 101'
Alternative fuel sources should not 'bank' on soy diesel and corn ethanol.
Another point that everyone is missing:
Severe Uranium Shortage by 2010
Democrats seem to think that all refineries are owned by companies who drill for oil. In reality, integrated oil companies are becoming the exception and refineries are largely owned by companies not in the drilling business.
But to stupid Democrats, all oil companies are the same.
Bumper Sticker Alert!
This brings back memories of Carter and Commies.
Take away the tax breaks for the oil bidnesses, middle class, small business...
Let's start looking at the tax exempt status of WINERIES....eh, Nancy....
Incredibly stupid. If you want energy independence, you don't apply dis-incentives. What a jerk. Too bad she never worked a day in the private sector, can't read a P&L or balance sheet, doesn't understand business cycles,and doesn't understand economics.
There is no such concept as "windfall profits."
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