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WYDEN MOVES TO REPEAL
EXCESSIVE OIL COMPANY TAX BREAK
Big oil company executives told Wyden
last week that tax break for
oil, gas exploration included in Energy bill this year is unnecessary
November 15, 2005
WASHINGTON, DC – U.S. Senator
Ron Wyden (D-Ore.) today successfully won the repeal of an unneeded
tax break for large, integrated oil companies for additional energy
exploration by offering an amendment to Tax Reconciliation legislation
considered by the Senate Finance Committee. The Committee today
approved Wyden’s measure to scale-back a tax incentive included
in this year’s Energy bill, which oil company executives
last week told Wyden they did not need. The chief executives of
Exxon-Mobil, Chevron, ConocoPhillips, BPAmerica and Shell Oil
each told Wyden at a joint hearing of the Senate Energy and Commerce
Committees last week that they agreed with a statement by President
Bush earlier this year that when the price of oil exceeds $55
a barrel, the oil companies do not need additional incentives
for oil and gas exploration. The price of crude oil is currently
at over $57 a barrel. In response, Wyden today offered the amendment
to limit an incentive originally included in the Energy bill (H.R.
6) enacted earlier this year by exempting major oil companies
from being able to claim the tax break. Recent reports have shown
that the five companies earned more than $25 billion in profits
during the most recent quarter.
“It defies common sense for
the Congress to be shoveling tax breaks at big oil companies when
even the executives say they aren’t needed,” said
Wyden at today’s markup. “The laws don’t restrict
tax breaks to the producers – they apply to everybody. So
today’s modest action starts the long march to start to
reform the tax breaks as they relate to the oil industry, and
limits these incentives to the smaller oil companies that actually
need the help the most.”
None of the executives questioned
by Wyden last week said they would be opposed to his efforts to
seek the repeal of a tax break for oil companies’ expenses
relating to oil and gas exploration.
This summer Wyden voted against
the final version of the Energy Bill, arguing it was full of tax-giveaways
to oil companies. Wyden’s amendment today was another move
toward greater fiscal responsibility and a smarter energy policy
by targeting tax incentives for those companies who need help
the most.
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