House OKs new taxes on big oil companies

[babylonsister]

House OKs new taxes on big oil companies

By H. JOSEF HEBERT, Associated Press Writer Wed Feb 27, 4:54 PM ET


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 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.

more...

http://news.yahoo.com/s/ap/20080227/ap_on_go_co/energy_taxes

[SteppingRazor]

1. Won't the oil companies just pass the cost on to consumers?

I mean, I see the necessity of investing in alternative energies, but this looks like a recipe for a $5 gallon of gas.

[LiberalEsto]

2. That's what they are threatening to do

The oil industry ran full-page ads yesterday and today in the Washington Post saying they will pass on the costs of new taxes to consumers.

I am sick and tired of Big Oil bullying the hell out of our country.

If we tax them, at least there will be money available for developing alternative energy. If they raise gas prices (which they will do, regardless), yes, it will hurt us, but it will also create increased incentives for developing alternatives to gas. People in Europe and Canada were paying the equivalent of $5 a gallon years ago.

[Arctic Dave]

3. Tax them!

The oil companies already have plenty of areas to explore and produce from. Alaska is a perfect example. The oil companies will explore one year then cap of the well until they can get a deal with the state to lower ther tax bill. Thy have no reason what so ever to cry about the situation they are in.

[margotb822]

4. Finally!

And, that's like a day's worth of profits for them.

A step in the LEFT direction!!