House Approves New Taxes On Big Oil

Passes $18 Billion In New Taxes On Biggest Oil Companies; Measure Awaits Senate Action

(AP)  The House approved $18 billion in new taxes on the largest oil companies Wednesday as Democrats cited record oil prices and rising gasoline costs in a time of economic troubles.

The money collected over 10 years would provide tax breaks for wind, solar and other alternative energy sources and for energy conservation. The legislation, approved 236-182, would cost the five largest oil companies an average of $1.8 billion a year over that period, according an analysis by the House Ways and Means Committee. Those companies earned $123 billion last year.

Senate Democratic leaders said they would put the bill on a fast track and try to avoid a Republican filibuster. The White House said the bill unfairly takes aim at the oil industry. President Bush is expected to veto the legislation if it passes Congress.

House Majority Leader Steny Hoyer, D-Md., noted it was two years ago, when oil cost $55 a barrel, when Bush said oil companies need no government subsidies to pursue more oil or gas.

"With the price of oil hovering around $100 do we really believe this incentive is justified?" asked Hoyer. "Do these companies need taxpayer subsidies to look for new product? They don't need any incentive."

Republicans said the measure unfairly targeted a single industry.

"It punishes the oil and gas industry. This is wrongheaded. It will result in higher prices at the gasoline pump. It's spiteful and wrong," said Rep. Jim McCrery, R-La.

The top Republican on the Ways and Means Committee, which developed the tax proposals, he cited statistics that show that oil companies already pay more taxes than many other industries.

Hoyer acknowledged "this legislation alone will not bring down gas prices." But he said the measure will provide a needed boost to alternative energy industries — solar, wind, biofuels, and geothermal — and help promote energy conservation. "That may bring down gas prices three years from now, 10 years from now," he said.

The bill would roll back two lucrative tax breaks for the five largest U.S. oil companies. One helps manufacturers compete against foreign companies; the other gives American companies a tax credit related to oil and gas extraction outside the country. Democrats estimated that those current breaks would save the oil companies $17.65 billion in taxes over the next 10 years.

The House-passed bill would use that money to promote renewable energy industries — such as wind, solar and cellulosic ethanol plants — by extending tax credits that recently expired or are scheduled to end at year's end.

The bill would offer tax credits for more energy efficient homes and a credit for "plug-in" gas-electric hybrid cars that would capture electricity off the power grid, once such cars become available in showrooms.

House Speaker Nancy Pelosi, D-Calif., said the shift of tax benefits from oil to alternative energy development was critical to increased energy independence and lowering energy costs. "We have the opportunity to invest in clean, renewable energy and energy efficiency," she said.

She noted the House twice last year passed similar tax plans, but they died in the Senate. Since then, the price of gasoline has climbed and large oil companies have made record profits, Pelosi said.

During debate, Rep Jim McDermott, D-Wash., urged lawmakers to "stop the madness of subsidizing oil companies" when the industry earned $123 billion last year.

The oil industry has lobbied intensely against the House tax legislation, calling it a "discriminatory bill" that targets companies that already pay considerable taxes. "New taxes ... will even further reduce our energy security by discouraging new domestic oil and natural gas production and refinery capacity expansions," the American Petroleum Institute said in a statement.

But other energy industries and energy efficiency advocates have campaigned for the legislation because of the tax incentives that would be directed their way.

"These incentives must be extended immediately to void significant harm to the development of clean energy industries in the United States," said a letter to lawmakers from more than 100 businesses, electric utilities, environmental groups and energy efficiency advocates.

A similar tax proposal passed the House last summer, but it was abandoned in the Senate where Democrats couldn't muster the 60 votes needed to overcome a GOP filibuster. Senate Democrats were maneuvering to avoid a repeat of that with the newly passed House measure.

The chairman of the Senate Budget Committee, Democratic Sen. Kent Conrad of North Dakota, said Democratic leaders are considering advancing the House bill under fast-track procedures related to the budget. This process would not permit an indefinite GOP stall.

The White House says singling out the oil companies for higher taxes "would reduce the nation's energy security rather than improve it" and "lead to higher energy costs to U.S. consumers and business."

Senior advisers would urge Bush to veto the bill should it pass Congress, the White House said in a statement before the House vote.

[speakinup]

"What do we do if Exxon decides to sell our oil to the Chinese instead? Posted by tburzio

First off, its not our oil.

However, Shale oil is a viable short term solution before moving on to renewable energy solutions.

Shale oil can be produced at $30 a barrel using "insitu" production techniques, and it seems to be environmentally safe.

Imagine the economic boom if we kept the oil money IN the US, instead of giving it to the likes of Hugo Chavez.

We could use it to create wind and solar power harvest stations, and free ourselves of oil forever!!!!

Write your congressperson asking for this kind of solution, please.

[bb19631]

Tax the oil companies, we the consumers and taxpayers will pay in the long run, anyways! What a bunch of ***!!!

[tantrim]

Now let me get this straight the federal government is going to tax the oil companies. So what will the oil companies do in response to this move. Raise gas prices and we the public will pay for it. Lower gas prices will make me happy. The dollar isn''t worth much on the world market so how about propping it up so that it buys more and the fuel cost will be less.

[wardoglrs]

Ron Paul "The Revolution"

[wardoglrs]

"Game Over"

[tburzio]

What do we do if Exxon decides to sell our oil to the Chinese instead?

[lobo0010]

Easy way for politicians to raise taxes and say they didn''t. oil companies just pass the bill to us, are you ready for $4 per gallon.
If congress would get off its a** and take care of the peoples business they would be investigating oil company profits, not baseball players, but then they would loose all that money. silly me.

[lobo0010]

Easy way for politicians to raise taxes and say they didn''t. oil companies just pass the bill to us.
If congress would get off its *** take care of the peoples business they would be investigating oil company profits, not baseball players, but then they would loose all that money. silly me.

[lobo0010]

Easy way for politicians to raise taxes and say they didn''t. oil companies just pass the bill to us.
If congress would get off its *** take care of the peoples business they would be investigating oil company profits, not baseball players, but then they would loose all that money. silly me.

[twomtns]

OH yeh ! yippie !
just who do you think will end up paying ?
we all know what large corporations do with added costs they pass it on to consumers of course
don''t *** about $4 a gallon soon it will be $5 maybe more another real bright move by the bush admin

[libsrweak]

Huge corporations already own the senate and the whitehouse.
I don''''t expect much support for renewable energy especially since it will cut into oil industry profits.


--------------------------------------------------------------------------------

Posted by gunownerdan at 12:01 PM : Feb 28, 2008
+ report abuse


*****************remember dear friend********

the white house and all the politicians WORKS FOR YOU...you dont want what the white house is doing??vote them out..you dont want big oil corporations??
CONSERVE OIL..however.....HOWEVER...they are like big giant puppets..eveybody has to pull on that string to make it move...

[kailumego1]

"EXCELLENT", IT''S ABOUT TIME, Hooray.

[pepperwood2]

It has been said "The White House said the bill unfairly takes aim at the oil industry. President Bush is expected to veto the legislation if it passes Congress."

It''s a place to start. Than bring on the Beer, Alcohol, & Cigarette companys that don''t contribute anything to saving the Planet. Getting tired of seeing all the Butts, Bottles, & Cans trashing up the place.

Use the taxes, penalities, application fees, etc. to create jobs, low income housing, fuel assistance, local & state tax relief, schools and other programs for those of us that are being taken to the cleaners.

Time for Congress to clean up their act & get back to what we voted them in for in the first place, doing the work of the American People.

I know, its an election year. So congress can sit back and play the blame game. While the corporation lobbyists pour large sums of money into their re-election campaigns to keep congress quiet so they can put it to the people in the mean time.

[pepperwood2]

It has been said "The White House said the bill unfairly takes aim at the oil industry. President Bush is expected to veto the legislation if it passes Congress."

It''s a place to start. Than bring on the Beer, Alcohol, & Cigarette companys that don''t contribute anything to saving the Planet. Getting tired of seeing all the Butts, Bottles, & Cans trashing up the place.

Use the taxes, penalities, application fees, etc. to create jobs, low income housing, fuel assistance, local & state tax relief, schools and other programs for those of us that are being taken to the cleaners.

Time for Congress to clean up their act & get back to what we voted them in for in the first place, doing the work of the American People.

I know, its an election year. So congress can sit back and play the blame game. While the corporation lobbyists pour large sums of money into their re-election campaigns to keep congress quiet so they can put it to the people in the mean time.

[gunownerdan]

Huge corporations already own the senate and the whitehouse.
I don''t expect much support for renewable energy especially since it will cut into oil industry profits.

[oldpilot954]

Wanna bet that when we also get solar/wind powered home systems we get a tax rather than a tax credit for installing our $30K solar electric system?

[juwboy]

Aunty Zion said (at 7.32AM) that a car will run on water if the molecules are electrically-charged to change the bond angle of the hydrogen atoms.

Yes, Aunty Zion, and the Sun rose in the West this morning.

[tomanyt]

Posted by ne_patriot7: "NOT NEW TAXES..... RESCINDING TAX BREAKS THEY NEVER SHOULD HAVE GOTTEN IN THE FIRST PLACE....

TRY GETTING IT RIGHT FOR A CHANGE...
Jesus, some people have such thick skulls they couldn''''t be penetrated with an IED."

FROM THE FIRST LINE OF THE ARTICLE..."The House approved $18 billion in new taxes on the largest oil companies Wednesday as Democrats cited record oil prices and rising gasoline costs in a time of economic troubles." What part of that didn''t you get?

[barryrose1]

Bushie just contradicted himself in front of the nation on not knowing the price of fuel at the pump.When asked another question he didn''t know or have an answer for, he went back to the fuel question that he evidently (LIED) about previously.

[hungry1968]

Posted by ne_patriot7 at 10:08 AM : Feb 28, 2008



That''s not to say that I disagree with you - I do AGREE 100%