Shine Trader Live reports:
U.S. President Joe Biden’s call to end vital tax breaks for the oil industry has been rejected by House Democrats.
In fact, the tax reform bill released by the House Ways and Means Committee avoids eliminating oil industry breaks that, in part, date back a century. Environmentalists attacked the move, arguing that the tax breaks, which help oil companies recoup drilling costs, make no sense in a warming world.
Erich Pica, president of Friends of the Earth, said:
“This bill is fundamentally at odds with the president’s commitment to eliminate fossil fuel subsidies, and it is a failure of climate leadership that will not be easily forgotten.”
Picca said his team would work to push the Senate to act on the finance Committee’s current tax plan, which would eliminate or modify more than a dozen tax provisions for the oil industry, with the goal of raising about $32 billion over 10 years.
Biden earlier this year asked Congress to eliminate the incentives and ordered federal agencies to eliminate all “fossil fuel subsidies.” In ordering agencies to stop the subsidies, Biden said:
“I don’t think the federal government should be giving $40 billion in fossil fuel subsidies to big oil.”
In the measure, Congressional Democrats advanced a package of tax breaks for clean energy, including power transmission, renewable energy, hydrogen and renewable jet fuel projects — worth about $273.5 billion over the next decade. The measure also would reinstate a 16.4-cents-per-gallon tax on crude oil and imported petroleum products to fund the Toxic Waste Site Cleanup Fund, or Superfund, to clean up contaminated industrial areas.
Among the tax policies for the oil industry not mentioned in the draft is an intangible cost deduction for drilling that allows oil and gas companies to immediately deduct costs such as labor, site preparation and repair.
The Democrats’ bill, though subject to tweaking, also leaves out existing deductions for oil and gas production from remote Wells and reserves for percentage consumption of oil and gas removed from their assets that mineral rights owners demand.
Mitch Jones, policy director for Food and Water Watch, called the lack of oil industry tax reform “a gross dereliction of duty and a monumental failure to combat fossil fuel pollution.”
Americans for Tax Reform, the U.S. Chamber of Commerce and other groups have lobbied lawmakers to keep the Tax breaks, arguing they are essential for the oil industry to recoup its costs.
Reprint indicated source：Shine Trader Limited Live information