Posted on 01/14/2007 7:40:41 AM PST by Flavius
Washington, D.C. - Democrats in the U.S. House of Representatives on Friday introduced a bill that would rescind billions of dollars worth of tax incentives extended to U.S. energy companies and put the money into a fund earmarked for renewable energy. Democrats in the U.S. House of Representatives on Friday introduced a bill that would rescind billions of dollars worth of tax incentives extended to U.S. energy companies and put the money into a fund earmarked for renewable energy.
Sponsors of the Creating Long-term Energy Alternatives for the Nation Act, or CLEAN, said it will save U.S. taxpayers about $13 billion over an unspecified number of years, but industry groups said it could hinder U.S. oil companies' ability to find and develop new energy sources.
Going after "Big Oil" is a top priority of the House of Representatives' Democratic leadership, which says oil companies have earned record profits at the expense of U.S. motorists paying high gasoline prices.
As part of legislation they pledged to unveil in the first 100 hours of the new legislative session, House Speaker Nancy Pelosi and nearly 200 co-sponsors introduced a bill that repeals a 2004 tax deduction for energy companies.
The bill also rolls back tax breaks for geophysical studies conducted by the five biggest U.S. integrated oil companies, and repeals some incentives to produce oil and natural gas in deep waters of the Gulf of Mexico.
However, the bill did not change oil and gas inventory accounting rules that some analysts said were in play in the legislation, and left intact incentives to build new U.S. refineries.
Instead, the lion's share of the savings comes from striking a phased-in 3-percent tax reduction that Congress gave to all U.S. manufacturers in 2004, which would have been in force through 2013. Ending that benefit will save about $6.5 billion in the 2007-2016 period, according to data from Congress' Joint Committee on Taxation.
In comparison, ending the geophysical tax breaks will save $103 million, according to committee data.
The bill would take the savings and put it into a renewable energy fund, which Congress will dole out at a later date to provide incentives for yet-unspecified renewable energy sources.
"This is just an act to take money from the oil industry and use it on alternatives -- that's just a repeat of the mistakes of the past," said John Felmy, chief economist at the American Petroleum Institute, U.S. oil and gas companies' biggest lobbying group.
Similar measures pursued by Congress in the 1980s that taxed oil industry profits and diverted money toward renewables were a "colossal failure" that ended up lowering U.S. oil production and boosting import dependence, Felmy said.
Environmental groups applauded the bill.
Friends of the Earth called the bill "a significant and welcome departure from the energy policy offered by the previous Congress and the Bush administration." Reuters
No kidding. Forcing natives off their land and hacking down some rain forest is something that only Al Gore can get away with.
" "Pump the water out of the other guy's side of the lake." "
Priceless!!
May I borrow that to use in my "discussions" with economic illiterates? (Sadly, some 99% of my acqaintances...)
Albert Barr wrote: "WOW, these democrats really do hate this low unemployment/inflation thing Bush has going."
I'm sure they'll say they aren't raising taxes. They are only cutting tax cuts in order to reduce the deficit (something they said they were going to do). Most likely, they don't believe small tax increases (um, elimination of cuts) will have a serious effect on the economy. It's all a matter of degree. How hard can they squeeze the goose that laid the golden egg before they kill it? I guess we'll soon see.
The Democrats want to be known as the "anti-business party."
It could be that big oil has a PR problem.
April 14, 2006— Soaring gas prices are squeezing most Americans at the pump, but at least one man isn't complaining.
Last year, Exxon made the biggest profit of any company ever, $36 billion, and its retiring chairman appears to be reaping the benefits.
Exxon is giving Lee Raymond one of the most generous retirement packages in history, nearly $400 million, including pension, stock options and other perks, such as a $1 million consulting deal, two years of home security, personal security, a car and driver, and use of a corporate jet for professional purposes.
http://www.abcnews.go.com/GMA/story?id=1841989
As stand alone bills, there are any number of things President Bush will probably veto. The parliamentarians here probably know a whole lot more than I do about the process, but it seems to me that when the Democrats want to pass something the President doesn't like, they will include it in a "must spend" bill - like money to fund the war in Iraq.
khnyny wrote: "Last year, Exxon made the biggest profit of any company ever, $36 billion, and its retiring chairman appears to be reaping the benefits."
Agreed. Why can't that money be spent on research and development? How much of that cash made it back to the shareholders in the form of dividends? $0.32 per $70+ share of their stock--not very generous. A dividend rate of 1.76% is positively stingy for a company making record profits and taking such generous care of its executives. Not that I support what the Dems are doing, but the oil companies aren't hurting. That makes them a target, and the Dems attacks ring true to large numbers of Americans.
How about investigating themselves?
Almost every nickel is put back into the ground. My little company, by the way, gives a whopping 20 cent dividend on a $20 stock--that is really socking it to the consumer, isn't it? Congress reminds of the the bankrobber Willie
Sutton, when asked why do you rob banks, he said (and I misquote) "because that is where the money is!"
Dear Dhimmicrats,
Guess who will spearhead research into "renewable energy"? Big corporations. Probably the same cast of characters running the oil industry. And if they get the job done using economy of scale- there's nothing wrong with that!
Sounds like another Jimmuh Carter era ahead.
Well, since it seems they are more interested in De-funding, or unFunding, or not funding new troops, we may not have to worry about that angle. But I see your point.
If they plan to spend it, how does it "save" us one damn thing?
Democrats go after 'Big Oil' friends of Bush
....and this is how the rats are gonna sell this bill to the American people.....
Whenever I hear someone use the phrases "Big Oil" or "Big Business" what I'm actually hearing them say is "I'm an idiot. Please don't take me seriously."
It's why President Reagan wanted the line item veto. There were things that were forced into bills by the Democrats that he would rather have vetoed, but he couldn't because they were in spending bills that had to pass.
Raising Taxes on evil Big Oil. Guess who is going to Pay those Taxes????
Pray for W and Our Freedom Fighters
IIRC, it actually was passed once, but the Supreme Court struck it down.
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