House OKs new taxes on oil companies

WASHINGTON - Declaring a new direction in energy policy, the House on Saturday approved $16 billion in taxes on oil companies, while providing billions of dollars in tax breaks and incentives for renewable energy and conservation efforts.

Republican opponents said the legislation ignored the need to produce more domestic oil, natural gas and coal. One GOP lawmaker bemoaned "the pure venom ... against the oil and gas industry."

The House passed the tax provisions by a vote of 221-189. Earlier it had approved, 241-172, a companion energy package aimed at boosting energy efficiency and expanding use of biofuels, wind power and other renewable energy sources.;_ylt=A0W...

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Won't cost them shit, they'll just pass the extra cost along to us. Unless that worthless prick Bush manages to find his lost pen in time to veto it.
Just STILL MORE "Feel-Good" look-we're doing-something ,smoke and mirrors bullshit by Bela Pelosi and Co.


"They keep talking about drafting a constitution for Iraq.Why don't we give them ours? It was written by a lot of really smart guys, and we're not using it any more".


'I used to have compassion, but they taxed it and legislated it out of existence.'

...Cato senior fellow Jerry Taylor comments on this law:

"I am all for eliminating oil subsidies, but the House bill does not really do that. The House bill prevents the oil and gas industry from claiming a tax deduction made available to every other U.S. manufacturer. That deduction ? which was established in 2004 ? had the practical effect of reducing the corporate income tax by 3 percentage points for manufacturers (broadly defined). While you can make a good argument for eliminating the manufacturers deduction based on the proposition that the federal government should not be distorting the economy by taxing some economic sectors at higher rates than others (or, alternatively, broadening the deduction so that it applies to all corporations), selectively eliminating that deduction for the oil and gas sector may well make the economic distortions produced by that tax break even worse.

"Regardless, the practical effect will be to reduce oil and gas production in the United States by reducing the returns available to domestic producers. We've been down that road before with the Windfall Profit Tax of 1980. Analysts at the Congressional Budget Office believe that the tax hikes imposed on the industry in 1980 reduced domestic production by 3-6 percent and increased foreign oil imports by 8-16 percent."

Has to be reconciled with the Senate bill.

"The two bills, passed at an unusual Saturday session as lawmakers prepared to leave town for their monthlong summer recess, will be merged with legislation passed by the Senate in June."

I could see this go to the supreme court within a year if this bill get signed into law. 'Big oil' has the pockets to fight this all the way and quickly. After all, you can't selectively eliminating that deduction for one sector but not another.

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