NYT editorial: The Senate Shills for Big Oil
One of the major shortcomings in last year’s admirable energy bill was its failure to extend vital tax credits to producers of wind, solar and other renewable fuels. This was entirely the doing of the Senate, which caved in to the oil companies and their White House friends.
The House had approved the credits but insisted — under the Democrats’ pay-as-you-go rules — that they be paid for by eliminating the same amount in tax credits for oil and gas producers. Industry (which is rolling in cash these days) howled, President Bush lofted veto threats, and the Senate caved.
The damage was immediately apparent. New investment in clean, non-fossil-fuel energy sources — which need the help until they become competitive with older, dirtier energy sources — began to shrivel.
The Senate now has a chance to redeem itself. Last week, the House approved a new $17 billion package of credits, spread over 10 years, to encourage the development of renewable energy sources and to promote energy-efficient buildings and appliances.
As before, the House insisted that the credits be paid for by terminating an equivalent $17 billion in tax breaks over 10 years for oil and gas companies. And right on schedule, Senate Republicans began complaining that increasing industry’s taxes would discourage investment in domestic oil and gas production.
(Continued here.)
The House had approved the credits but insisted — under the Democrats’ pay-as-you-go rules — that they be paid for by eliminating the same amount in tax credits for oil and gas producers. Industry (which is rolling in cash these days) howled, President Bush lofted veto threats, and the Senate caved.
The damage was immediately apparent. New investment in clean, non-fossil-fuel energy sources — which need the help until they become competitive with older, dirtier energy sources — began to shrivel.
The Senate now has a chance to redeem itself. Last week, the House approved a new $17 billion package of credits, spread over 10 years, to encourage the development of renewable energy sources and to promote energy-efficient buildings and appliances.
As before, the House insisted that the credits be paid for by terminating an equivalent $17 billion in tax breaks over 10 years for oil and gas companies. And right on schedule, Senate Republicans began complaining that increasing industry’s taxes would discourage investment in domestic oil and gas production.
(Continued here.)
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1 Comments:
With oil at over $103 / barrel, how can anyone vote to maintain (which also means INCREASE) the tax credit for FIVE oil companies. The House bill is very clear … only 5 companies would be affected.
This is a JOBS bill … do you want terminate the tax credit that encourages alternative energy or support the 5 oil companies. Sen. Conrad is actually talking about changing the filibuster rules to 51 instead of 60 for this legislation.
I wrote about this last week.
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