BETTER USES FOR BIG OIL’S $20 BIL

Top Dems call on House GOP to eliminate oil industry tax breaks
Adrew Restuccia, Fewberuary 8, 12011 (The Hill)

"Top Senate Democrats are calling on House Republicans to agree to a plan to eliminate oil industry tax breaks as a means of reducing the deficit…House Republicans have pledged to cut federal spending by billions…[in a] government funding measure that must be approved by Congress by early March.

"It’s unclear what spending Republicans hope to cut…But Republicans have been hesitant to endorse a proposal outlined by President Obama during his State of the Union address last month to eliminate oil industry tax breaks…"

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"…A spokesman for House Speaker John Boehner (R-Ohio) quickly cast doubt…on the chances of such a proposal gaining support. He argued that the proposal -- put forward by Senate Majority Leader Harry Reid (D-Nev.), Sen. Charles Schumer (D-N.Y.) and other top Democrats -- would raise gas prices. He also raised questions about whether the plan could gain support among other Democrats, particularly those from drilling states…"

[Letter to Boehner from Senate Majority Leader Harry Reid (D-Nev.) and other senior Democrats:] “…[W]e urge you to consider ending a number of tax loopholes and other subsidies that benefit big oil and gas companies. Closing these loopholes would save the federal government more than $20 billion over 10 years.”

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[Letter to Boehner from Senate Democrats:] “The days of big oil companies making billions in record breaking profits while receiving billions in taxpayer-financed subsidies must end…It defies common sense to cut programs that are creating jobs, helping jumpstart our manufacturing sector and strengthening the middle class while protecting taxpayer-funded handouts to big oil companies that add little to our economic or energy security.”

"The oil industry has railed against the proposal, arguing that any effort to eliminate oil industry tax breaks would harm the economy…"