Washington, D.C. - As early as late February, Senator Frank Murkowski (R-AK) is expected to introduce an energy bill that will direct billions of dollars in subsidies to some of the most profitable companies in the nation, according to Taxpayers for Common Sense, a leading opponent of corporate welfare.
"This bill is 21st Century trickle-down economics - it gives billions of dollars to energy corporations, while taxpayers don't get anything," said Cena Swisher, Program Director at Taxpayers for Common Sense. "It looks like the political contributions of these companies have greased the wheels of the corporate welfare machine."
For example, in the last election cycle, the oil and gas industry gave more than $29 million In campaign contributions and is awarded generous tax breaks and subsidies in Murkowski's legislation, says the group.
The bill will focus on subsidies for oil, gas, coal and nuclear power industries. Some estimates put the total price tag at least $20 billion over the next 10 years. It also includes a provision for drilling in the Arctic National Wildlife Refuge (ANWR).
"While ANWR may be the big dog in this fight, collectively these subsidies and tax breaks will take a bigger bite out of taxpayers," continued Swisher.
The effectiveness of subsidies contained within the bill is questionable, according to TCS.
"This bill simply will not reverse our current energy crisis," stated Swisher, "These subsidies have proven to be expensive anachronisms, yet we continue to throw billions of dollars at them."
This bill is being proposed at a time when the oil industry is seeing record profits. Last year, Exxon-Mobil reported profits of $17 billion - the most ever earned by the company. Chevron and Texaco have also reported sharp profit increases.
Swisher concluded, "Why allow these companies to take billions from the taxpayer pump, when they are seeing record profits?"
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