Energy gets a break (senate passes most of it in tax bill)

Energy gets a break

Oil, gas industry gains as Senate OKs $14B in tax benefits

By Gargi Chakrabarty, Rocky Mountain News
May 12, 2004

The U.S. Senate on Tuesday overwhelmingly passed $14 billion in tax breaks for the energy industry that will have wide implications for Colorado.

In a 92-5 vote, the Republican-led Senate approved the tax breaks, which were stripped off the pending energy bill and added to the $170 billion corporate tax bill, which also passed the Senate on Tuesday/.

---snip---

Sen. John McCain, R-Ariz., had earlier attempted to strip the corporate tax bill of the energy provisions, calling the subsidies a "shameless scam" to benefit the oil and gas industries and other energy interests.

But supporters of the bill argued that with gasoline prices soaring beyond $2 a gallon and natural gas around $4 per million Btu, nearly double two years ago, Congress must take action to boost energy production.

more: http://www.rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_2879100,00.html



Another Article that appeared last night:

Senate approves $14 billion energy bill

Associated Press

WASHINGTON (AP) - Stung by high gasoline prices, the Senate by a wide margin voted its approval Tuesday of a $14 billion package of tax breaks that supporters said were designed to spur U.S. energy production and hold down prices.

Democrats joined Republicans as senators in a 85-13 vote turned back an attempt by Sen. John McCain, R-Ariz., to strip the energy provision from a corporate tax bill. McCain called the energy subsidies a "shameless scam" to benefit the oil and gas industries and other energy interests.

Supporters of the tax provisions argued that with gasoline prices soaring beyond $2 a gallon across much of the country, Congress must take action to stimulate domestic energy production.


Lawmakers have acknowledged, however, that most of the tax incentives are aimed at long-term production and would have little impact on high prices for gasoline, natural gas and crude oil this year.

more: http://www.billingsgazette.com/index.php?id=1&display=rednews/2004/05/11/build/nation/54-senateenergybill.inc


So Cheney finally got his energy on - before the final Supreme Court ruling on his energy papers.

Note that the original bill was about 21 Billion - the fattened bill moved up in value to about 31 (or 34) Billion and both were killed by fillibuster on the senate floor. The post-Christmas scaled back version was $19 Billion. This is touted as 14 Billion (though the new game seems to be to deflate the REAL costs to the deficit and later announce the "REAL" costs...). In short - this isn't that far off from the original plans - in terms of dollars.

Done completely on the QT regarding the public - as it is part of a corporate tax cut bill... that was pushed in response to EU penalties based on, I believe, Bush's tarrifs on steal two years (or so) ago. All a win win win for Bush. Put on the tarrifs to pander to WV, PA and Ohio voters... then get threatened with sanctions in the international trade arena... then come back with the "only solution" which is a more blanket corporate tax cut rather than a targeted one which would be viewed as a form of subsidies for a particular industry which would have the same result (unfair trade) according to those threatening sanction... THEN throw in the energy give aways whered they won't be noticed because the price tag is already big and do it when few people are looking.

makes me want to vomit. I am a liberal and I would vote for Mccain over some of our so called Demcrats. I don't agree with him on a LOT of issues but one thing i do agree with him on is getitng corruption by corporate donors out of Washington. I believe doing that would be a giant step in solving all of our other problems.

eom

desperately to give their corporate donors their moneys worth before the election, but I didn't think this would pass. Pardon me but motherfucker worthless pieces of shit, I'm sorry but the Democrats have really proven themselves little better than their "opposition". I'm sick of this! HUGE corporate giveaways while at the same time screwing the unemployed worker, its obvious the whole lot of them in Washington need to be removed. They no longer represent the People and don't even pretend to anymore, how much more before the citizens catch on? This is the first I've seen this, my local rag had nothing about it.

To be fair here is the list of those few who voted against this disgusting corporate welfare giveaway and it includes a couple surprising ones, the rest of you can kiss my skinny ass. WTF is wrong with these Democrats, I've had enough of them?
YEAs ---13
Biden (D-DE)
Boxer (D-CA)
Corzine (D-NJ)
Dodd (D-CT)
Feingold (D-WI)
Graham (D-FL)
Gregg (R-NH)
Hollings (D-SC)
Kennedy (D-MA)
Kyl (R-AZ)
Lautenberg (D-NJ)
McCain (R-AZ)
Sununu (R-NH)

Did Kerry vote in favor of this "tax cut" or was he just not there?

When the vote was taken.

So this means the people who are richest are being asked to contribute even less to the pot.

Is there some kind a wisdom or ethical rule like, "from those to whom much is given, much is asked" which this tax bill totally violates?

Let's see . . . Saudi Arabia - 25% of world oil reserves;

Iraq - 10% of world oil reserves;

United States - 3% of world oil reserves.

Oh yeah, right, shoveling another $15-20 billion to the oil companies will "free us from dependency on foreign oil" and "cut rising gas prices" by tapping into those HUGE domestic reserves. These companies aren't drilling for oil, they're drilling the Treasury for subsidies, and, by God, they're going to get just whatever they want in pursuit of a geological illusion.

Why doesn't Spencer Abraham just get a beverage cart, fill it with bricks of $100 bills, and wheel it down K Street? He could cut out the Congressional middleman and save time & money by doing so.