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Billions in Energy Subsidies, Tax Breaks Approved by House
Washington, D.C.
- The House voted early Thursday morning to approve a $70
billion energy package loaded with subsidies to almost every
energy lobby in Washington, according to Taxpayers for Common
Sense, a budget watchdog organization.
"The only
thing getting drilled in this bill are taxpayers," said Cena
Swisher, Policy Analyst at Taxpayers for Common Sense.
"Energy
lobbyists are drilling for Washington dollars and early this
morning they struck gold." The House bill, the "Secure America's
Future Energy Act of 2001 (S.A.F.E)," offers more than $33
billion in tax credits and incentives for energy companies
including new subsidies for oil, gas, nuclear, coal and electric
utilities, but offers little to taxpayers and consumers, according
to the group. The Senate will debate it's own energy proposals
no earlier than September.
"This
bill is a sheep in wolf's clothing," continued Swisher. "It
is a grab bag of subsidies, tax giveaways and pork for wealthy
companies masquerading as energy policy."
The oil
industry received more than $13 billion in tax breaks in the
bill. This is while the oil industry is posting record profits.
In the first quarter of this year, Exxon-Mobil reported profits
of $5 billion - the most ever earned by the company. Chevron
and Texaco have also reported sharp profit increases.
"They
are robbing Peter to pay Paul," concluded Swisher. "It is
outrageous that take advantage of the energy crunch to pay
off their biggest campaign contributors."
Oil and
gas companies donated more than $25 million to the Republicans
during the last election, according to the Center for Responsive
Politics.
The legislation
would spend billions on fossil energy research and development,
including $238 million for oil and gas research for next year.
The bill
also provides $172 million in subsidies for the extremely
profitable coal industry's research and development efforts
for fiscal year 2002. Subsequent appropriations for coal would
cost taxpayers $909 million over five years.
The bill
would also provide funds for a new round of clean coal technology
projects that would cost taxpayers $2 billion.
Other
highlights include:
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The
phasing out of a 4.3-cent motor fuel excise taxes on railroads
and inland waterway transportation (Cost: $240 million
for 2002 through 2006, and $992 million for 2002 through
2011)
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A
tax credit for investment in qualifying advanced clean
coal technology; Sec. 118: Credit for production from
qualifying advanced clean coal technology. (Cost: $1.3
billion for 2002 through 2006, and $3.3 billion for 2002
through 2011)
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An
income tax credit of $3 per barrel of oil and 50 cents
per 1,000 cubic feet of natural gas production from marginal
wells.
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Suspension
of limitation based on 65 percent of taxable income and
extension of suspension of taxable income (Cost: $898
million for 2002 through 2011)
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Lease
sales is Western and Central Planning Area of the Gulf
of Mexico (Cost: Hundreds of Millions)
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