REAL WORLD EVENT DISCUSSIONS

Oil company subsidies bill dies, predictably

POSTED BY: NIKI2
UPDATED: Friday, March 30, 2012 08:58
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VIEWED: 835
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Thursday, March 29, 2012 8:22 AM

NIKI2

Gettin' old, but still a hippie at heart...


Ahhh, yes; more obstructionism from the right, more pay for play from the legislators who "represent us" (biggest laugh of the week).
Quote:

Senate Republicans on Thursday blocked a Democratic measure to end tax breaks for the major oil companies.

The procedural vote of 51-47, which failed to reach the needed threshhold of 60, killed the measure, which was given little chance of eventually winning approval in the Republican-controlled House.

"With record profits and rising production, I'm not worried about the big oil companies," Obama said in the White House Rose Garden. "... I think it's time they got by without more help from taxpayers, who are having a tough enough time paying their bills and filling up their tanks."

A CNN/ORC International poll released Thursday shows a majority of Americans blame oil companies -- rather than the Obama administration -- for the high gas prices.

According to the survey conducted last weekend, seven in 10 Americans say rising gas prices have caused hardship for them and their families.

"Instead of taxpayer giveaways to an industry that's never been more profitable, we should be using that money to double down on investments in clean energy technologies that have never been more promising," Obama said. "Investments in wind power and solar power and biofuels; in fuel-efficient cars and trucks and homes and buildings. That's the future. That's the only way we'll break this cycle of high gas prices that happens year after year after year as the economy is growing."

The Senate measure -- which was opposed by most conservatives -- would have repealed subsidies currently benefiting BP, Exxon, Shell, Chevron, and ConocoPhillips.

Among other things, the measure killed on Thursday would have ended oil production's categorization under the tax code as a form of domestic manufacturing eligible for a deduction worth 6% of net income, according to New Jersey Democratic Sen. Robert Menendez, the bill's author.

The measure also would have prevented oil companies from claiming foreign royalty payments as a credit against American taxes, and cut the ability of companies to deduct numerous costs associated with the drilling process.

"With oil prices over $100 per barrel, Big Oil does not need a taxpayer incentive to explore," Menendez's office asserted in a written statement. More at http://www.cnn.com/2012/03/29/politics/oil-subsidies/index.html?hpt=hp
_bn5

Why the hell ARE we still subsidizing these guys? Yeah, of course, I know...same old, same old...but it sure pisses me off. They are among the VERY few profiting in this economy, while the vast majority are suffering; their profits are astronomical; yet we keep giving them freebies. Boggles the mind.

Oh, for the return of a party which understood the word "compromise" or even (gawd forbid) working together for the good of the nation.

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Thursday, March 29, 2012 12:59 PM

RIONAEIRE

Beir bua agus beannacht


It doesn't seem like they need subsidies.

I assume you're my pal until you let me know otherwise. "A completely coherant River means writers don't deliver" KatTaya

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Thursday, March 29, 2012 3:22 PM

ANTHONYT

Freedom is Important because People are Important


Hello,

Try to subsidize a solar power company, or a windmill, and see what Republicans say. Yet somehow it's acceptable to subsidize a vast and profitable industry.

--Anthony



_______________________________________________

Note to self: Mr. Raptor believes that women who want to control their reproductive processes are sluts.

Reference thread: http://fireflyfans.net/mthread.asp?b=18&t=51196

Never forget what this man is. You keep forgiving him his trespasses and speak to him as though he is a reasonable human being. You keep forgetting the things he's advocated. If you respond to this man again, you are being foolish.

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Thursday, March 29, 2012 3:35 PM

AURAPTOR

America loves a winner!


Quote:

Originally posted by AnthonyT:
Hello,

Try to subsidize a solar power company, or a windmill, and see what Republicans say. Yet somehow it's acceptable to subsidize a vast and profitable industry.

--Anthony



Did that, and it failed. Miserably. Can you say Solyndra ?

That's right, I knew you could.

Meanwhile, the US govt takes in more $ via taxes from the oil companies, , for doing absolutely nothing. Meanwhile, the oil companies must use their gross earnings for payroll, R and D, equipment, and all the things that it takes to run a huge company, before it gets 1 penny in profit.

Yeah, that's a fair take.

" AU, that was great, LOL!! " - Chrisisall

"The world is a dangerous place. Not because of the people who are evil; but because of the people who don't do anything about it." - Albert Einstein


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Friday, March 30, 2012 6:19 AM

NIKI2

Gettin' old, but still a hippie at heart...


Yup, Anthony, that about covers it. 'Cuz they want to go on making profits for their contributors until that last drop of oil is squeezed from the Earth, THEN wonder what to do.

I get a kick out of how something negative happens on the left, and our hard-core righties file it away in their minds so they can bring it up every single time as a gross generalization "See?" Wonder if they have any room for anything else in their brain files?

At least I won't be around long enough to see their chickens come home to roost when they keep fighting alternative and renewable energy. My sympathy goes out to those who know better, yet who WILL have to suffer along with them.



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Friday, March 30, 2012 6:35 AM

M52NICKERSON

DALEK!


Quote:

Originally posted by AURaptor:
Quote:

Originally posted by AnthonyT:
Hello,

Try to subsidize a solar power company, or a windmill, and see what Republicans say. Yet somehow it's acceptable to subsidize a vast and profitable industry.

--Anthony



Did that, and it failed. Miserably. Can you say Solyndra ?

That's right, I knew you could.

Meanwhile, the US govt takes in more $ via taxes from the oil companies, , for doing absolutely nothing. Meanwhile, the oil companies must use their gross earnings for payroll, R and D, equipment, and all the things that it takes to run a huge company, before it gets 1 penny in profit.

Yeah, that's a fair take.

" AU, that was great, LOL!! " - Chrisisall

"The world is a dangerous place. Not because of the people who are evil; but because of the people who don't do anything about it." - Albert Einstein




...and are still making record profits.

If an industry is making record profits, it does not need subsidizing. More so when that industry has a finite time in which it is going to be around. Oil is not a renewable resource in the traditional sence.

I do not fear God, I fear the ignorance of man.

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Friday, March 30, 2012 7:06 AM

GEEZER

Keep the Shiny side up


Here's the CRS summary of the bill in question.

Quote:

SUMMARY AS OF:
3/19/2012--Introduced.


Repeal Big Oil Tax Subsidies Act - Amends the Internal Revenue Code to extend through 2012: (1) the tax credit for residential energy efficiency improvement expenditures, (2) the tax credit for the purchase of plug-in electric vehicles, (3) the tax credit for alternative fuel vehicle refueling property expenditures, (4) the income and excise tax credits for biodiesel and renewable diesel used as fuel and fuel mixtures, (5) the tax credit for production of electricity from refined coal production facilities, (6) the tax credit for the construction of new energy-efficient homes, (7) the tax credit for energy-efficient appliances, (8) the suspension of the income limitation on percentage depletion for oil and gas from marginal wells, (9) the excise tax credit for alternative fuels and fuel mixtures, and (10) the tax credit for mine rescue team training expenditures and the election to expense mine safety equipment.

Extends through 2013: (1) the cellulosic biofuel producer tax credit, and (2) the special depreciation allowance for cellulosic biofuel plant property.

Extends the tax credit for the production of electricity from wind resources through 2013 and from other renewable resources through 2014. Allows an increase in such credit for production from Indian coal facilities.

Extends the tax credit for investment in wind facilities through 2013 and for investment in offshore facilities using wind to produce electricity through 2014.

Increases the allocation of credits under the qualifying advanced energy project (i.e., the project for the production of renewable and alternative energy resources).

Amends the American Recovery and Reinvestment Act of 2009 to extend through 2012 the grant program for investment in renewable energy resources in lieu of tax credits.

Modifies the definition of "cellulosic biofuel," for purposes of the cellulosic biofuel producer tax credit and the bonus depreciation allowance, to mean any liquid fuel which is derived solely by, or from, qualified feedstocks. Defines "qualified feedstocks" as any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis and any cultivated algae, cyanobacteria, or lemna.

Limits or repeals certain tax benefits for major integrated oil companies (defined as companies with annual gross receipts over $1 billion and an average daily worldwide production of crude oil of at least 500,000 barrels), including: (1) the foreign tax credit; (2) the tax deduction for income attributable to oil, natural gas, or primary products thereof; (3) the tax deduction for intangible drilling and development costs; (4) the percentage depletion allowance for oil and gas wells; (5) the tax deduction for qualified tertiary injectant expenses.

Amends the Energy Policy Act of 2005 to repeal royalty relief (suspension of royalties) for: (1) natural gas production from deep wells in shallow waters of the Gulf of Mexico; and (2) deep water oil and gas production in the Western and Central Planning Area of the Gulf (including the portion of the Eastern Planning Area encompassing whole lease blocks lying west of 87 degrees, 30 minutes west longitude).

Dedicates any increased revenue generated by this Act to the reduction of a federal budget deficit or the federal debt.

Provides for compliance of the budgetary effects of this Act with the Statutory Pay-As-You-Go Act of 2010.



Note this bit:

"Amends the Internal Revenue Code to extend through 2012: ...(4) the income and excise tax credits for biodiesel and renewable diesel used as fuel and fuel mixtures, (5) the tax credit for production of electricity from refined coal production facilities..."

I thought biofuel and clean coal were anathema to the alternate energy folks.

Also interesting how they're removing tax deductions (not subsidies, actually) only from the largest oil producers, and not all of them.

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Friday, March 30, 2012 8:58 AM

NIKI2

Gettin' old, but still a hippie at heart...


Biofuel and "clean coal" (which doesn't exist) ARE anathema, to this alternative-energy person. But there's this word, you see, it's called "compromise"... Or you could see it as "baby steps", or not throwing the baby out with the bathwater. Whatever your point is, I personally don't expect manna from heaven, only the realistic small changes along the way to get to a better place.



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