AP: House Would Tax Oil Companies $18 Billion
Posted on: Monday, 14 April 2008, 03:00 CDT
WASHINGTON - 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 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.
Crude oil prices have topped $102 and pump prices are more than $3 per gallon, with indications that $4 is not out of the picture as the summer driving season approaches.
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.
"Gas prices have been soaring," added Rep. Richard Neal, D-Mass. He said many people are "struggling to pay energy costs that have skyrocketed in a harsh winter."
Republicans contended the tax proposals would cut investment in oil and gas development and lead to even higher prices.
"This bill singles out one industry," complained Rep. Kevin Brady, R-Texas.
House Speaker Nancy Pelosi, D-Calif., noted that the House twice last year passed similar tax plans, but they did not pass the Senate. Since then, the price of gasoline has climbed and oil companies have made record profits.
Mrs. Pelosi's office distributed a list of gasoline prices compared with oil industry profits, including a record $40.6 billion in earnings by ExxonMobil Corp. last year.
The bill would roll back two lucrative tax breaks for the largest U.S. oil companies. The money would go for tax incentives to support wind, solar and biofuel industries as well as energy efficiency programs.
Mrs. Pelosi said shifting tax benefits from oil to alternative energy development is critical to increased energy independence and lowering energy costs.
The oil industry is calling it a "discriminatory bill" that unfairly targets companies that already pay more taxes than U.S. manufacturers.
"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.
Originally published by Associated Press.
(c) 2008 Augusta Chronicle, The. Provided by ProQuest Information and Learning. All rights Reserved.
Source: Augusta Chronicle, The
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