Cardin looks to eliminate oil tax breaks
As Senate Democrats prepare to hold a vote this week on whether to end taxpayer subsidies for the nation’s largest oil companies, Sen. Benjamin L. Cardin carried the party’s message to a Shell station on Russell Street in Baltimore on Monday.
“At a time of soaring gas prices and record budget deficits, we need to end $4 billion a year in subsidies for the big-five oil companies,” said the Maryland Democrat, a member of the Senate Finance Committee. “Americans should not be footing the bill for big oil, which has made nearly $1 trillion in profits over the last decade.”
Democrats across the country have been pounding on the perennial issue in an attempt to corner Republicans who have argued against any tax increases to close the nation’s burgeoning budget deficit. The Senate is expected to vote on the proposal later this week.
The Democratic legislation would end annual subsidies for Exxon Mobil, Shell, Chevron, BP and Conoco Phillips. Last week, Cardin co-signed a letter asking the oil companies to admit that they no longer need the tax breaks.
“It’s a question of fairness,” Senate Majority Leader Harry Reid said during a floor speech Monday. “The bonus checks taxpayers are writing to big oil are absurd and obscene. They defy common sense.”
Republicans and business groups have opposed new taxes, noting the economy's slow recovery. The U.S. Chamber of Commerce sent a letter to senators Monday arguing that “levying new taxes and fees on America’s oil and gas industry would increase U.S. dependence on foreign oil, increase costs to consumers, jeopardize U.S. jobs, and erode economic competitiveness.”
The nonpartisan Congressional Research Service found last week that eliminating the tax breaks for oil companies would not have an impact on prices at the pump. “Prices are well in excess of costs and a small increase in taxes would be less likely to reduce oil output, and hence increase …gasoline prices,” according to the report.
The average price for a gallon of regular unleaded gas in Maryland is $4.002, according to AAA.
Comments
I doubt repealing those tax breaks will impact the price. However, the money saved from those tax breaks can be used to close the deficit and used to fund research into renewable sources. A much better use of our money than padding the pockets of Big Oil.
Posted by: Daniel Ewald | May 17, 2011 9:54 AM
Can't believe a word that comes out of Cardins mouth...he is a little weasel and a scumbag.
Posted by: B | May 17, 2011 10:07 AM
The Secretary of Energy lied to Congress........................................................
It's up to us to set the record straight!
Let Congress know we need them to help stop the misinformation coming out of DOE in order to protect special interest friends of the DOE staff. Stop the privatization of our government by nuclear and oil friends of the staff. Oil, Coal & Nuke-people hate hydrogen and fuel cells because they compete with them and do it cleaner and better! GAO investigations have already proven DOE favoritism in published reports. We need new leadership at DOE!
This week, DOE Secretary Steven Chu appeared in front of the Senate Energy and Water Development Subcommittee to face questions about the President's FY2012 energy budget. The first question out of the gate from Committee Chair Diane Feinstein, who pre-arranged the question/response with Chu, was about Sec. Chu's "current view on hydrogen technology and whether it can be successful or not."
Sec. Chu gave incorrect information on hydrogen that contradicts real world data as well as numerous DOE studies and reports. He claimed that hydrogen obtained from natural gas had "no benefit" in terms of carbon elimination. Yet, DOE-funded research has shown that the most clean and efficient use of natural gas for transportation is to use it to create hydrogen to power a fuel cell electric vehicle. Chu also said hydrogen storage was a problem due to high pressure. What's the problem Sec. Chu? These tanks have logged nearly 3 million miles, had more than 27,000 fill ups, and managed to fuel vehicles for more than 114,000 hours of operation.
We need you to tell Congress that the DOE should stop giving misleading information - it is up to DOE to fairly represent the current state of the technology. Right now, they aren't doing that. We need critical decisions on our energy future made based on fact!
The time is now to redouble our efforts to ensure that fuel cells and hydrogen energy are included in any clean energy strategy.
We need Congress to know that the head of the Energy Department is not giving the White House and the rest of the country the facts on how robust fuel cell and hydrogen technologies have become. We are asking for fairness. The DOE owes the President and the country that much.
Thank you for your continued commitment to our campaign.
Sincerely,
Fuel Cell and Hydrogen Energy Association
American Clean Energy Association
National Green Power Campaign
Posted by: Paul Danders | May 20, 2011 9:27 PM
You don't think that this is going to cause gas prices to increase? There is absolutely no chance that the CEO's pay cut would be enough to keep the prices constant even if they were going to cut their benefits package. Remember, a companies number one priority is to have a profit and provide to the stakeholders. When we are already paying $4.00 for gasoline, is it really a good idea to spike prices even further? The summer is just starting and the program of deliberate, government-centered inflation (QE & QE II) will continue to inch prices higher to all-time highs.
This stunt makes it look like Democrats are looking out for the taxpayers, but really this affects lower income people more. Who does $5 a gallon gas hurt the most? The wealthy can afford an extra couple of dollars but the people who are penny-pinching in the "Obama Recovery" will struggle.
Posted by: From Harford | May 21, 2011 9:40 PM