Oil firms targeted with $29 billion in taxes to fund new energy, conservation
Date: Tuesday, June 19, 2007 @ 22:54:16 UTC
Topic: Legal
Associated Press/Jun. 19, 2007 12:58 PM
WASHINGTON - A proposal to hit oil companies with $29 billion in new
taxes advanced in the Senate on Tuesday, targeting the money to energy
conservation, wind turbines, electric hybrid cars and clean coal
technology.
The massive tax package, double what Democrats had talked about as
recently as last week, is "designed to promote clean and sustainable
energy," said Sen. Max Baucus, D-Mont., chairman of the Finance
Committee that approved the measure by a 15-5 vote.
It will be added to energy legislation being considered by the full Senate.
Senators acknowledged that oil companies would to howl over the new taxes.
But Sen. Chuck Grassley, R-Iowa, said, "We have entered a new era in
energy markets ...(that) requires a dramatic shift away from tax
incentives for oil and gas production" and toward support for other
energy sources and efficiency.
...
Sen. Jon Kyl, R-Ariz., said the taxes on the large oil companies - most
of the provisions exempt smaller producers - "will almost certainly
lead to gas price increases" as oil companies pass on the added cost.
"You can't raise taxes ... by $29 billion and not expect gas prices to
increase," he said.
...
Full story: http://www.azcentral.com/news/articles/0619congress-energy0619-ON.html
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