Come on now, why did the oil corporations need government subsidy in the first place? Especially in today's deficit economy, corporations shouldn't receive welfare. The oil companies all reported record profits last quarter (and the quarter before that, and before that, etc.), in fact, the most profitable quarter ever. Why throw bad money after bad?
The House of Representatives voted to repeal $18 billion of tax breaks for oil and gas producers, and to use the savings to finance tax incentives for wind-power projects, solar panels and more energy-efficient cars.
The bill, which passed by 236-182, faces long odds amid opposition in the Senate and a White House veto threat. But it allowed House Democrats to promote renewable energy as an alternative to high-priced oil, and to take aim at the oil industry, which is in the midst of a profit boom as prices keep rising.
"We have the opportunity to invest in clean, renewable energy and energy efficiency, and grow our economy, creating new jobs," said House Speaker Nancy Pelosi (D., Calif.)
Republican opponents of the bill said they supported extending tax credits for renewable-energy investments that expire at the end of 2008. But they complained that taking away tax breaks for oil companies would drive production overseas to less stable countries, and make it harder for U.S. companies to compete in a global economy.
[From House Votes to Repeal Breaks for Big Oil]
The Senate should pass this too, but odds are, they won't. Dick Cheney is frantically speed-dialing all the corporate-friendly Democrats.
Oil and gas companies would lose some $13.6 billion in tax breaks granted in 2004 for domestically produced goods. Exxon Mobil Corp., Chevron Corp., ConocoPhillips, Royal Dutch Shell PLC and BP PLC would lose the tax breaks entirely. The deduction would be frozen at 6% for smaller oil and gas companies. That deduction had been scheduled to jump to 9% in 2010.Here's where part of the money would go:
Oil companies would also lose another $4.1 billion under provisions that provide less-favorable tax treatment for certain kinds of foreign income.
Consumers would gain new tax breaks for buying plug-in hybrid cars.
