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
I'd like to see Citgo summarily ceased.
Better living through Government intervention of every facet of our lives./s
As usual, democrats go after those who create jobs, democrats destroy jobs, and then look for a red herring to detract attention and shift blame.
Ceased would work, too ;'}
When gas hits $ 8.00 a gallon EVERYONE will know where the blame belongs...DEMOCRATS!!!!
It's all set up for Mrs. Clinton to return to power--almost like having psychic powers...
I HEAR YOU! Sadly, I'm one of the few...:<
bump
Leni
President Ford used his veto pen over eighty times with a Democratic congress. Guess W will need to keep his at the ready during the next two years.
What the left doesn't tell you is that it's Kennedy who has done favors, for HIS oil company, while he's been in Congress.
From the book Do As I Say:
Many people are surprised to learn that the Kennedys have been major players in the oil business and continue to receive sizable checks for crude being pumped from their numerous properties.
The Kennedy's have shrouded their oil ownership from the public; the Kennedy's own two oil companies that have drilled for oil in 4 American states.
Financial disclosure records show to each extended Kennedy family members receives between $50-100,000 a year from properties that were purchased for their mineral rights (oil). In total, family revenue from crude oil and natural gas is more than $1 million a year.
Ted led a battle in the Senate (and won) to pass legislation which cut back on "excessive profits" for oil companies. But he made a nice little loophole for his own oil companies.
He made sure the legislation distinguished between "small struggling oil producers" (his companies) and large oil companies.
Another one to veto until it gose thru committe.
Psycho_Bunny wrote: "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.""
You may be true, but it doesn't matter. The people who demonize "Big Business" and "Big Oil" are credible to large numbers of Americans. It's tough to politically beat someone like this, especially when more and more Americans support whoever or whatever puts a buck in their pockets (disregarding long-term effects of the policies). I'm not saying all Americans believe it, but substantial numbers do.
lol....I live in Seattle. There's most likely, absolutely nothing you can enlighten me as to what liberal twits believe.
Saving us money? I don't see how this saves us money. We still are going to have to pay high gas prices and gas taxes. The democrats are just taking the money back and putting it somewhere else
" "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...)
Be my guest......Hey, I stole it!
Idiots, freaking idiots. I hate Democrats I wish people would wake up and vote every one of them out of office.
...and President Bush will vetoe it and they'll be inadequate votes for an override.
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