White House budget would kill $38.8B in tax breaks for oil, gas and coal

[kpete]

Source: The Hill


White House budget would kill $38.8B in tax breaks for oil, gas and coal
By Ben Geman - 02/01/10 09:52 AM ET

The White House calls for the end of nearly $40 billion in tax beaks for oil, gas and coal companies in its budget proposal released on Monday.

The tax effort is sure to prompt outcry from industry groups, who have long argued that ending the subsidies will stymie investments in domestic energy production.

The fiscal year 2011 budget plan calls for repealing $38.8 billion worth of tax breaks for oil, natural gas and coal companies over a decade, according to the White House.

Obama’s first budget plan a year ago called for cutting $31.5 billion in oil-and-gas industry incentives, including a repeal of the industry’s ability to claim a lucrative domestic manufacturing tax break.

Read more: http://thehill.com/blogs/e2-wire/677-e2-wire/78991-white-house-budget-revives-oil-industry-tax-fight

[theophilus]

1. I LIKE this! If we need to cut welfare, this is the kind to cut.....Corporate Welfare!

I hope this happens and I hope the trend continues. "Transition" to new energy is on the way.

[dotymed]

71. I agree,

but why "over a decade"? This corporate welfare needs to stop immediately. Single party rule...

[go west young man]

2. That's more like it.

These greedy corps have been milking us all for too long. Charge em like they do us at the pump.

[notadmblnd]

3. oh I'm sure we'll pay for it. They'll just raise the price of gas.

[euphoria12leo]

7. We'll be riding bicycles.

But then again that should help with the rising cost of health care.
A vast majority of Americans are at risk of becoming overweight/obese.

:shrug:

[cliffordu]

12. Bicycles are great.

I believe they can make us smart and healthy as the Dutch.

[euphoria12leo]

21. Bicycles are great and we need to be smart.

But what will the teabaggers do? :shrug:

[liberation]

27. Maybe complain how public transportation was not up to par when they need it to get to their latests

tour de dumb?

I remember these idiots bitching and moaning because the DC public transport was not up to their liking, when it came to ferry their asses from their parkings to the mall when they were doing all those "massive" shows of force in DC. Which is funny, since these are the same idiots who wanted to gut all sorts of public infrastructure, esp. transportation. The dissonance in their pea sized reptilian brains must be a sight to behold, of that I am sure.

[euphoria12leo]

32. LOL tour de dumb n/t

[Salmonslayer]

69. What world do you live in where bicycles are the answer?

Bicycling is not an alternative for most people. It is only an alternative for a small percentage of the population. Your world has to be fairly small not to see this.

[euphoria12leo]

74. Your brain is small

if you didn't understand it was a comment about paying more at the pump when big oil has to pay more. It seems as though you are the only one that didn't understand. You don't know one damn thing about me or my world.

[liberation]

26. Hopefully, they don't make us as weird though....

;-)

If only most Americans were aware of the sexy legs one gets from riding a bike on a normal basis... I'd just settle for not getting more than 2 close calls every time I ride my bike to work.

[JDPriestly]

42. Bicycles are great for the young and those with good knees.

Bicycles are bad for people with weak knees.

Much as I used to love riding a bicycle, as I have grown older, I realize that older people who can ride bicycles are very lucky.

[perdita9]

23. Hurray for Bicycles!

I do most of my errands on a bike in the summer. It's good for the environment and my cardio-vascular health.

[euphoria12leo]

47. I'd have to buy a bike

because I don't live near a grocery, shopping ctr. anything. At least not close enough to ride a bike.
I just noticed I live in a hick town. Help!!

:crazy:

[RoccoR5955]

36. They are gonna raise the price of gas anyhow?!?!?!

WTF does it matter?
Then they can be gone after for gouging their clientele. Perhaps something good could come out of this.

AFAIC, it's about time that Exxon-Mobil's corporate welfare ENDED, once and for all!

[Enthusiast]

38. The ol' RW blackmail trick. nt

[fasttense]

63. That's the con game they sold America.

If you tax us, if you make us pay our fair share of the burden of this society that we make billions of profits off, then we will just burden that society even more. But how come when their costs go down, we don't get the windfall? Instead they pocket it as profits, the highest profits in the history of the world. With all the government welfare the oil corporations have been getting, the cost of gas should be about 50 cents a gallon.

But you can say that about anything. Why don't we stop taxing business altogether? I mean if every increase in tax is passed on to consumers, then no taxes would mean everything is dirt cheap. But when Nike moved their factories to take advantage of South American child slave, I mean labor, how come the price of their shoes did NOT go down? How come when Reagan and the bushes increased the working class tax, the cost of labor did NOT go up? I mean if corporations can pass on their tax burden, why can't the working class?

The truth is there is a going rate, taxes or no taxes. Taxes are a marginal considerations in price decisions.

The holes in this con are huge.

[Fedja]

64. Easy solution

Drive European cars. :)

The newest Multiair engines we can get push out 170 hp while making 47 mpg. High gas prices just mean more incentive to make cars that use less of it.

[Gecko6400]

65. Which will ripple through the entire economy.

[thereismore]

4. Now we know that the budget is doomed. nt

[onehandle]

11. Probably that part. nt

[L0oniX]

5. LOL ...sure ok whatever

[Rapanui1]

6. I sincerely hope Obama to succeed in this--but I doubt it

[BumRushDaShow]

8. FINALLY.

And while they're at it, it's time for a windfall profits tax too.

[Democrats_win]

9. Right on!

[bertman]

10. The Big Energy boys don't take kindly to ANYBODY tinkering with their profit margins.

These are the same guys who helped off JFK, set Nixon up for Watergate, eased Carter out of office, elected Emperor Bush the First and Second.

I admire President Obama for this bold move. But I also wonder what he is giving in return. Those guys don't give up something for nothing.

Rec.

[Lorien]

15. Obama is promoting absurd, destructive things like "clean coal"

instead of solar, wind, or anything new and innovative. Plus we're still killing people in the Middle East. Seems to me they've already gotten a payback

[Name removed]

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[Name removed]

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[Lorien]

13. Why would the world's most profitable industry need any "tax breaks" to begin with?

[berni_mccoy]

20. Because two oilmen were in the White House for 8 years.

[Enthusiast]

49. Yup, you said it, berni_mccoy!

There are consequences to the election theft of 2000. This is just one.

[bertman]

53. Read Russ Baker's "Family of Secrets" and you'll find that the answer is because they want it

and they'll do whatever it takes to get it.

[Lil Missy]

14. About time. n/t

[glinda]

16. Step in right direction. Now how to stop them from passing it on to us, the consumer.

[Abq_Sarah]

34. That won't be possible

No matter how much Washington sputters and stutters. Regulatory taxes. etc... are always paid by the consumer in the end.

[glinda]

39. Then really, what is the point. Charge the Banks but we pay up and they get bonuses? Really.

[Abq_Sarah]

48. Our reps in DC believe we are stupid

They think we're incapable of connecting the dots. Ask a business owner who pays and you'll get an honest answer.

There are certain regulatory fees and taxes that apply to my business. They are part of the cost of doing business and are passed down to the consumer.

[glinda]

57. So one of my utility bills nearly doubled in 6 months. No. I cannot justify it.

[dotymed]

72. Since the "push"

to get people to use credit Unions has been working....I just got a letter from my credit union.....the fees have increased to the same as the "big banks." It's all a scam to keep the wealthy and the poor in the status quo. Capitalism, without a lot of regulation, does not work.

[Deep13]

17. That part sounds good. nt

[Amonester]

18. About time... but... I'm worried these mob$ters will plan for a...

new New Pearl Harbor, 'cause the 'industry groups' will not like it...

so, they'll threaten to cut giving back some of OUR money (they obviously never Really needed) to bribe pols

so, I'll beleive it when I'll see it.

[boomerbust]

22. Heads are exploding

On CNBC. Calling this a tax hike of epic proportions.:evilgrin:

[Rosa Luxemburg]

24. how do you spell hallelujah!

we the ordinary people need that money!

[WriteDown]

25. It will be interesting to see what effect this has on energy bills...

I've been enjoying a fairly low NG heating bill this year.

[winyanstaz]

28. Good..its overdue....

[sulphurdunn]

29. All politics is local,

I suppose. Here in Virginia, the state is slashing public school funding and state employment while rushing to change charter school laws to qualify for federal bribes. At the same time it continues a pay a $4 a ton subsidy on coal, so coal companies can profit from mining in places that wouldn't otherwise be profitable. all the while refusing to raise any new revenue through taxation or through reduction of existing tax breaks for business. Virginia ranks 8th in GDP and 33rd in relative taxation among the states. It was our new Governor, Bob McDonnell, an alumns of Regent University, who made the GOP rebuttal to the SOTU address from his chamber in the former capital of the Confederacy with smiling people of color standing politely in the background. The only prop missing was a rendition of "Carry Me back to Old Virginny", the de facto State Song.

[AllyCat]

30. Yeah!!! That is the way to cut the damn budget!

Not by cutting services to people who are out of work and hurting. Cut the money to these profiteers!

Of course, putting myself back in the reality-based community, I know the Petroleum lobby will get this moved out.

[progressoid]

31. The cynical side of me says this will get watered down a LOT before it gets signed by the Prez.

[indy legend]

33. You can count on it

getting watered down. Every republican will be against this and we can count a hand full of the gutless blue dogs and that POS Lieberman joining the repukes. We talking about multi billion dollar corporations here and we have learned here lately that a few votes and the high court can be bought pretty cheaply.Pay CLOSE attention to who votes how and remember them come primary time and in November even if they are a democrat. Remember, a democrat who votes like a republican is just as useless as a republican. Exhibit "A" Joe Lieberman. And there is NOTHING on earth more useless than a republican politician.

[TatonkaJames]

37. Tax Breaks

Quote : The tax effort is sure to prompt outcry from industry groups, who have long argued that ending the subsidies will stymie investments in domestic energy production.
What have they done in the past up until now that should have had our dependency and cleaner production lessened ?

[justabob]

45. right, very good question

Near as I can tell, all They have done is wring as much money as possible out of we The People. They had huge windfalls a couple of years ago, and what exactly have They done with all that money? The budgets for alternative energy and/or innovation are a tiny fraction of their obscene profits.

Welcome to DU!

[DLnyc]

55. What they mean is it won't subsidize dependence on THEIR energy.

By ending subsidies to the oil industry, and, hopefully, vastly increasing incentives for renewables, this will POWERFULLY STIMULATE domestic energy production -- just not the kind of (easily controlled and monoplized) energy these 'industry groups' are addicted to.

[Fire1]

40. Go for it! n/t

[JDPriestly]

41. Great! This will help build our energy independence and the environment.

And it will help balance the budget.

[happygoluckytoyou]

43. THIS AND DUBAI IN $TROUBLE$.... will the madness ever stop... i can't take it any more!!!!

The constant pounding of the drums... then endless splat splat splat of bankers hitting the pavement...
This is pure and simple CRAZYNESS ! ! !

If only we could all escape to KENNY LAY'S PRIVATE GET-AWAY on ENRON ISLAND.....

[erpowers]

44. Good Deal

I think this is something that could be done. At least I think all the oil and gas subsidies should be ended.

[bread_and_roses]

46. Sounds like a good move to me

As far as it raising prices at the pump, no doubt - but the earth thanks us for every mile we don't drive, and high gas prices are the only mechanism that seems to reduce US driving, far as I know. So, even despite the disproportionate impact on low-income and the poor, I can't object to higher gas prices.

[JoeyT]

58. Yeah, screw the poor.

They didn't need those groceries anyway.

A lot of poor people live outside cities...Where they have to drive a long way to buy groceries or see a doctor. Who cares if this screws them, as long as we can reduce CO2 a negligible amount from one of the smaller polluters while leaving the big ones intact, it's a fine idea.

[OhioBlue]

61. This isn't a per gallon tax at the pump

IIRC - gas prices are more about supply/demand & speculation in the market more so than taxes/profits of big oil.

I know what you're saying tho - many are on a very tight budget and already carpool, group errands, etc. and don't really have much wiggle room. I think that gas prices will go up/down/fluctuate regardless of the revocation of tax breaks for big oil tho.. The announcement might cause some movement in the speculative markets - I don't really know if the speculators actions on this news would make the price go up or down - we would need someone more schooled in economics for that answer.

[JoeyT]

62. Agreed

I know next to nothing about what actually makes the price go up and down. Best I can tell it's based on whim. ;)

[bread_and_roses]

66. The poor and working class are quite screwed now-and cheap gas does not = less poverty

A reality I never forget or ignore or support or justify, although I can understand why you would think otherwise from that one post in isolation. I should have elaborated, but one falls into conversational mode sometimes here - thinking that everything you've said before is "part of the conversation" and known to others.

I'd probably have to write a treatise to fully develop my thoughts behind that one post, which I don't have time or energy to do, but I'll try to summarize briefly.

There is virtually nowhere in this country - urban, suburban, or rural, where low-income families or individuals can live in decency and security.

This is a direct outcome of the gross income inequality that is systemic in the US, combined with free-marketeer exploitation (slum lords in cities, grossly substandard housing in rural areas) and a dearth of resources devoted to infrastructure and income support.

Urban, suburban, and rural sprawl all create environments that are ecologically destructive and environmentally unsustainable in our fast-approaching and inevitably low-energy future. People will need to live close to where they work, shop, go to school, play. Whether those communities are human-scaled and livable or not is up to us.

Low gas prices are artificial and contribute to unsustainable sprawl and energy consumption. They have to go up, and they will. We can choose to let poor and low-income working class bear the full burden of that - as we currently (and unconscionably) let them bear the burden of other price structures now - or we can figure out ways to make sure, short-term, that people don't go hungry, cold, or without medical care no matter where they live or what their income. Short term that means efficient and cheap public transportation even for rural areas, among other measures.

Longer (though ever-shorter) term we better figure out how to re-create sustainable communities, where local farmers provide most of the food and local manufacture and services provides most of the jobs. And the first step in making that possible is to address the gross income-inequality we currently accept and the inexorable mandates of capitalism moving ever-more manufacture of essential goods to cheap-wage countries and creating consumer demand for useless junk to generate more profits.

There is nothing sustainable about people living in isolated homes miles and miles from their work or the necessities of life. That does not mean that people have to - or should - live in tiny cubicles in hives without access to gardens, nature. One has to think outside the box.

I have very little expectation that any sensible thought or planning will be given to any of this, which inevitably means more suffering and deprivation for all but the uber-wealthy.

By the way, the worst poverty I've ever seen - and I've seen a lot of it in all sorts of environments - was rural poverty. Children huddled under blankets layered with newspaper in a stone-cold near-shack with scarcely a scrap to eat in the house. And that was when gas was very cheap. Cheap gas does not mean less poverty.

I am always glad to see anyone here recognizing the impact of any policy on poverty, so I welcome your comments.

[OhioBlue]

77. just had to tell you

that this is a fantastic post - thanks for sharing your thoughts and taking the time to really explain. I know you weren't replying to me - but when I read your very thoughtful post... I didn't want it to go without comment.

[bread_and_roses]

79. the post below was meant to thank you

not myself, lol - duh.

[bread_and_roses]

78. thank you

I appreciate it. It was a good exercise for me to flesh out that post - helped me clarify my own thinking. It's why I come here - a kind of low-intensity mental exercise.

[Gecko6400]

67. I find the folks here

frequently forget that many, many Americans do not live in urban areas, which compels us to use our trucks and cars to get to towns. Also its very cold in a lot of places which prohibits bike riding.

On another note our grocery prices will increase also because of this.

[westerebus]

50. Buy stock in Vespa.

Or any company that makes motor scooters.

[underpants]

51. AP:"Obama proposes tax hikes in budget"

http://www.msnbc.msn.com/id/35185592/ns/business-personal_finance

The budget proposal released Monday would extend Obama's signature Making Work Pay tax credit — $400 for individuals, $800 for a couple filing jointly — through 2011. But it would also impose nearly $1 trillion in higher taxes on couples making more than $250,000 and individuals making more than $200,000 by not renewing tax cuts enacted under former President George W. Bush. Obama would extend Bush-era tax cuts for families and individuals making less.

Obama revived numerous proposals for business tax increases that didn't fare well in Congress last year, including a scaled-down plan to increase taxes on U.S. companies with major overseas operations, and plans to increase taxes on oil and gas companies.

---hmm not a lot of details on the oil company part, maybe the first quote (from a Republican) can clarify things----

Rep. Dave Camp of Michigan, the top Republican on the tax-writing House Ways and Means Committee, said, "This budget features too many new taxes, too much new spending and too much new debt."

[farmout rightarm]

52. Not sure what this is supposed to do..

how does it really address the global situation (at least as far as green-vs-energy needs/wants is concerned)?

It isn't going to save Americans any money nor does it have any mitigation on world consumption. I guess I don't see the point...

[valerief]

54. That'll kill their petty cash! nt

[defendandprotect]

56. Great -- then let's nationalize them -- !!!

[Gecko6400]

68. Like we did

passenger train travel (Amtrak). That's worked well, right?

[defendandprotect]

75. Certainly NOT like Amtrak . ..

which we improved a number of times and then sold back to private interests a

number of times!

Certainly the oil/auto industry has long been fighting efficient railroad services

as it continues to fight any mass transportation system -- everywhere.

[Quantess]

59. This will generate a lot of controversy

and, you can count on it, a lot of opposition from the RW.

[sce56]

60. I sure hope people realize this is the type of thing that got other people in trouble like

JFK pissed off the wrong people and it is curtains time! But I love it! Make Exxon pay out the wazoo and keep the eye on them to keep them from screwing us at the pumps again!

[Salmonslayer]

70. Dont be fooled. This is really a tax on the people

The additional tax burden will be passed on to the consumer and hit those on tight budgets more than others. Wealthier individuals can more easily absorb the additional costs.

It is politically popular to "take it to the oil companies", but the reality is that the consumer will absorb almost 100% of this additional tax burden.

This is our government playing on our collective ignorance. They are smiling at us and shaking our hand in friendship, but, their other hand is in our back pocket grabbing our wallet.

This is a tax increase that will mostly impact working class people across the country.

[lonestarnot]

73. SW Gas touted a decrease in charges, but my bill was highest ever.

They're day is coming.

[alp227]

76. KO'ing corps and K&R'ing good news, one headline at a time.

Again the Obama administration is knocking down the excessive power of Corporate America to control our money and elections.