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The House managed to get the guts to approve $18 billion in new tax increases to the largest oil companies as the Democrats noted the record profits these companies have been making and also the rising gasoline prices while our economics turn downward.
The money, to be collected over a ten year period, will provide tax breaks for alternate energy sources as well as for wind, solar, and energy conservation. The legislation was approved by a vote of 236-182.
Senate Democratic leaders said they would put the bill on a fast track and try to avoid a Republican filibuster. 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.
House Majority Leader Steny Hoyer, D-Md., noted it was two years ago, when oil cost $55 a barrel, when Bush said oil companies need no government subsidies to pursue more oil or gas.
"With the price of oil hovering around $100 do we really believe this incentive is justified?" asked Hoyer. "Do these companies need taxpayer subsidies to look for new product? They don't need any incentive."
Republicans said the measure unfairly targeted a single industry.
"It punishes the oil and gas industry. This is wrongheaded. It will result in higher prices at the gasoline pump. It's spiteful and wrong," said Rep. Jim McCrery, R-La. YahooNews
As is natural for a Republican, they are against any kind of tax increase, especially for an oil company! Go figure that one will you?
A similar tax proposal passed the House last summer, but it was abandoned in the Senate where Democrats couldn't muster the 60 votes needed to overcome a GOP filibuster. Senate Democrats were maneuvering to avoid a repeat of that with the newly passed House measure.
The chairman of the Senate Budget Committee, Democratic Sen. Kent Conrad of North Dakota, said Democratic leaders are considering advancing the House bill under fast-track procedures related to the budget. This process would not permit an indefinite GOP stall.
So let the Bush administration veto this bill. Just more ammo for the Democrats come November! Bye bye GOP. R.I.P.
