House Approves $18 B In New Taxes on Oil Companies

WASHINGTON -- The House approved $18 billion in new taxes on the largest oil companies Wednesday as Democrats cited record oil prices and rising gasoline costs in a time of economic troubles, The Associated Press reported.

The money collected over 10 years would provide tax breaks for wind, solar and other alternative energy sources and for energy conservation. The legislation, approved 236-182, would cost the five largest oil companies an average of $1.8 billion a year over that period, according an analysis by the Ways and Means Committee. Those companies earned $123 billion last year, the AP reported.

Senate Democratic leaders said they would put the bill on a fast track and try to avoid a Republican filibuster. Republicans contended the tax proposals would cut investment in oil and gas development and lead to even higher prices, the AP reported. The White House said the bill unfairly takes aim at the oil industry. President Bush is expected to veto the legislation if it passes Congress, the AP reported.

The bill would roll back two lucrative tax breaks for the largest U.S. oil companies. The money would go for tax incentives to support wind, solar and biofuel industries as well as energy efficiency programs, the AP reported.

-- NYSSCPA.org News Staff

Posted on 2/28/08