Dems Take Aim at Oil Company Tax Breaks (yes we must punish the evil oil co.)
By H. JOSEF HEBERT
Associated Press Writer
WASHINGTON (AP) -- 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. (yes we want to rape as much money from these evil capitalist polutting pigs, mind you we aren't going to fund alternatives that might mean the oil companies have less money for us to steal)
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. (we hope)
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." (has anyone including this reporter asked Ms Pelousy how raising taxes on the oil companies and the American public is going to give us energy independence)
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. (yeah while not once did they discuss that how the state and federal governments make 10cents of tax revenue for every penny that the oil companies make. NEVER do they talk of cutting the tax of the finished product at the pump do they)
Topping the list for repeal are:
-Tax breaks for refinery expansion and for geological studies to help oil exploration. (so in order to help us move toward greater energy independence she is going to kill the incentives for the two number 1 reasons that we are dependant on foreign oil. Our lack of Refineries and our freeze on Domestic exploration and drilling)
-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. (why continue with an incentive designed to decrease our dependence sucking money and jobs out of the country is always a better plan)
Democrats say neither tax benefit should be needed for an industry reaping large profits at today's high crude oil prices. (as stated nowhere near the amount of money that congress is making off this industry)
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. (which will now be added to the price at the pump IF they decide to continue in either of these areas. Which they won't why try and build refineries and search for oil in the US when it's much cheaper every where else thanks to congress and their prohibitive taxes)
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. (no they estimate that they can squeeze another 10Billion out of Oil companies and the American Driver if they can screw the oil companies better on the off shore drilling)
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. (which every hearing they held proved didn't happen the only ones gouging us at the pump is the government through taxes)
-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. (except that means more ethanol refineries which their first tax increase just killed )
-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. (yeah as long as they don't block the view of the Kennedy Compound)
-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. (that no one wants to buy because they don't save the consumer any money)
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. (once again one of the main problems with both these type of fuels is refineries, which Nancy intends to kill any incentive for the industry to build)
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. (but will raise their taxes now)
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. (incremental tax increases are easier to sneak pass the public is what he really means)
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." (yeah thats good Chuckie threaten the oil companies enough that they move completly out of the country and we have to import all our fuel, thats a real good plan for energy independence)
Next year, Schumer assumes the No. 3 leadership position among Senate Democrats and will be one of the party's top strategists.
I don't know whats scarier the Democrats ideas to make us energy independant or the AP Reporters lack of knowledge or lack of balls to ask the right questions
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