The House of Representatives has passed another version of the energy tax package that failed to make it into the energy law passed in December or into the economic stimulus package that became law earlier this month. (See this and this from June on the Senate's failure on the tax portion and also see "Economic Stimulus" under The Business of Renewables below.) What the legislation, HR 5351, would do, essentially, is rescind $18 billion in tax breaks that the oil and gas industry are presently enjoying and use that money to underwrite advances in energy efficiency and renewables, including extending tax credits to the renewable industry. This article from CNNMoney.com, House Votes To Repeal Oil Tax Breaks, Finance Renewables, is one of the few of hundreds that characterizes the legislation correctly. Most of the articles describes "tax hikes" or "new taxes" when, in fact, we are talking about the rescission of tax breaks from which the oil and gas industry are deriving considerable benefit at the same time they are experiencing record profits. Illinois Congressman Rahm Emanuel said yesterday in the floor debate: "The American people do not deserve to pay the oil companies twice: once at the pump and once again on tax day. There are record prices at the pump, and now we have record taxpayer subsidies for the big oil companies. As my mother used to say, "such a deal.'" Taxpayer subsidy. Good expression.
Will the Senate pass the same legislation? I'm not that great at predicting, but I would guess no. If they do, President Bush will undoubtedly veto it. There aren't enough votes to override. (And yes, it makes me angry.)
