At a time when we have more than $15 trillion national debt, American taxpayers are set to give away over $110 billion dollars to the oil, gas, and coal industries over the next decade. Clearly, we cannot afford it. When the five largest oil companies made over $1 trillion in profits in the last decade, with some paying no federal income taxes for part of that time, they certainly do not need it. It is time we end this corporate welfare in the form of massive subsidies and tax breaks to hugely profitable fossil fuel corporations. It is time for Congress to support the interests of the taxpayer instead of powerful special interests like the oil and coal industries. That is I joined with Congressman Keith Ellison to introduce legislation in the Senate and the House called the End Polluter Welfare Act. Our proposal is backed by grassroots and public-interest organizations including 350.org, Friends of the Earth, Taxpayers for Common Sense, and many others. It is immoral that some in Congress advocate savage cuts in Medicare, Medicaid, and Social Security while those same people vote to preserve billions in tax breaks for Exxon Mobil which is the most profitable corporation in America. It is equally obscene that as those members of Congress fight to continue never-ending fossil fuel subsidies worth tens of billions, they are working overtime to deny a one year extension for key sustainable energy incentives for the emerging wind and solar industries. Instead of passing strong legislation to help reverse global warming, Congress continues the giveaways to the 200-year-old fossil fuel industry even as that industry's carbon pollution wreaks devastation on our planet. Enough is enough. While there have been attempts to remove some of these fossil-fuel subsidies in the past, our legislation is the most comprehensive ever put together in that it would end all of the tax breaks, special financing arrangements, and federal research support for fossil fuels. Our bill would make sure the fossil fuel industry pays its fair share by reforming royalties for drilling or mining on public lands or in federal waters. We end the loopholes that allow tar sands pipeline operators to avoid paying the oil spill clean-up tax. It is important that the American people understand just how egregious these fossil fuel handouts are:
- A Tax Deduction for an Oil Spill? -- We all remember the BP oil disaster in the Gulf of Mexico, the worst oil spill in U.S. history. What is less well known is that BP is claiming a 9.9 billion tax deduction on the money they had to spend cleaning up their own mess and paying for damages they caused. That is absurd.
- They Manufacture What? -- Coal and oil lobbyists added fossil fuels to a bill aimed at helping American manufacturers, so they too could claim 'manufacturing' tax deductions. The added cost for taxpayers:12 billion over the next ten years.
- Good Enough for Big Oil, but not Clean Energy -- Most of us have not heard about Master Limited Partnerships. These special financing arrangements allow oil and gas investors to avoid paying certain corporate income taxes, but are not available to clean energy businesses. Ending this fossil fuel loophole not only starts to level the playing field for clean energy investment, it saves the government an estimated 2.4 billion over the next decade.
- Free Federal Oil and Gas Leases? -- Fossil fuel corporations are supposed to pay the government fair market royalties in exchange for the right to drill on public lands or in federal waters. But thanks to a loophole in federal law, some oil and gas corporations drilling in the Gulf of Mexico pay zero in royalties. The non-partisan Government Accountability Office estimated this could cost taxpayers up to53 billion over the life of these loophole leases.