House Votes to Boost Taxes on Oil Companies

$18B Tax Package Advances Despite Threat of Bush Veto

By Steven Mufson
Washington Post
Wednesday, February 27, 2008

The House of Representatives brushed aside threats of a White House veto today and voted 236 to 182 in favor of an $18 billion tax package that would rescind a tax break for the five biggest oil giants and use the revenue to boost incentives for wind and solar energy and energy efficiency.

The measure now heads to the Senate, where it faces a tough challenge in getting enough lawmakers to support ending the debate on the measure and bringing the bill to a vote. This is the fourth time during the past year that Democrats have tried to get the package adopted.

The Bush administration, GOP lawmakers and big oil companies condemned the bill, which they said would raise fuel prices for consumers, discourage oil and gas exploration in the United States and unfairly discriminate against a single industry while other manufacturers continue to enjoy a tax break.

But hours after crude oil prices hit a new high of $102 a barrel on the New York Mercantile Exchange, most lawmakers saw no reason why the oil industry couldn't manage to pay an additional $1.8 billion a year in taxes. The bill's total cost is a 10-year figure.

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