Washington, DC– (ENEWSPF)—July 31, 2015. Yesterday, Representative Earl Blumenauer introduced H.R. 3311, the End Oil And Gas Tax Subsidies Act of 2015, legislation that would eliminate tax breaks for the oil and gas industry and will save taxpayers more than $23 billion over five years, and more than $44 billion over ten years. The legislation is very similar to President Obama’s budget proposal, which would eliminate oil and gas tax benefits.
American taxpayers are subsidizing some of the largest and most profitable companies in the world with their tax dollars. These subsidies underwrite the costs of oil and gas production, including offsetting intangible drilling costs, the cost of tertiary injectants, and costs associated with domestic production. There are also subsidies that offset foreign taxes, provide tax shelters disguising active income with passive losses, and subsidies that allow major oil companies to discount the value of their inventories. The End Oil And Gas Tax Subsidies Act would end 10 of the most egregious tax loopholes enjoyed by the oil and gas industry.
“Right now, we have tax loopholes in place that have helped companies like Chevron, ExxonMobil and Shell add to their billions in profits. The American taxpayer should not be footing this bill,” said Representative Blumenauer. “Instead of padding the bottom line of oil and gas companies, taxpayer dollars could be better spent renewing and rebuilding our nation’s infrastructure and investing in emerging clean resources like wind and solar that will help us combat climate change and transition to a clean energy future.”
“We applaud Congressman Blumenauer for his continued leadership calling to end harmful subsidies to the oil and gas industry – some of which have been in place for over a century. There is simply no good reason to give away billions of taxpayer dollars to one of the world’s most profitable and environmentally damaging industries,” said Tiernan Sittenfeld, Senior Vice President of Government Affairs, League of Conservation Voters.
“This legislation is not only fiscally responsible, it’s an environmental imperative,” said Greg Dotson, Vice President of Energy Policy, Center for American Progress. “The American people want policy makers to embrace the clean energy sources of the future, not give away their tax dollars to Big Oil.”
“Eliminating distortionary and expensive tax breaks for oil and gas will help reduce the deficit, stop enabling our overdependence on fossil fuels, and level the playing field for investing in cleaner energy alternatives,” said Rachel Cleetus, Lead Economist, Union of Concerned Scientists.
“Oil and Gas companies, some of the most profitable companies in the world, are doing well enough that they don’t need to be subsidized with billions of dollars taken from the paychecks of hardworking Americans. That’s why we support this important legislation to finally end these ridiculous subsidies,” said Melinda Pierce, Legislative Director, Sierra Club.