From the Office of U.S. Sen. Barbara Mikulski:
Senator cosponsors bill, votes to bring it to the floor for debate
U.S. Senator Barbara A. Mikulski (D-Md.) today voted to begin debate on the Repeal Big Oil Tax Subsidies Act. The bill would repeal tax loopholes to the five largest, most profitable oil companies in the world: BP, Exxon, Shell, Chevron, and Conoco Phillips (“Big 5”) and use those savings to reduce the deficit and extend expiring energy tax provisions for one year. Senator Mikulski is a cosponsor of the bill.
“Balancing the budget on the backs of middle-class families while preserving lavish subsidies for oil and gas companies isn’t fair,” Senator Mikulski said. “Americans are paying $4 a gallon for gas, while the top five oil companies are getting $4 billion a year in tax breaks. Maryland families are already against the ropes. They can’t afford to give billions of tax dollars to pad oil companies’ pockets.”
Over the last decade, the Big 5 have enjoyed nearly $1 trillion in profits and tens of billions of dollars in taxpayer subsidies. Last year alone the Big 5 amassed $137 billion in profits on the backs of American drivers.
“It’s time to end lavish tax subsidies that add to the nation’s deficit, drive up costs for families and send jobs overseas,” Senator Mikulski said.
By incorporating the tax-extending provisions of the Stabenow Amendment to the Surface Transportation bill, the Repeal Big Oil Tax Subsidies Act will help continue important incentives for alternatives to oil. It extends tax credits for biodiesel, cellulosic ethanol, and alternative fuels such as natural gas and propane. It also extends important tax credits for wind, efficiency, and some fossil fuel incentives as well.
The rest of the savings will be dedicated to deficit reduction. The Joint Committee on Taxation (JCT) estimates that the cost of extending the energy tax incentives in title I at $11.7 billion over ten years. JCT estimates the revenue saved from repealing the oil and gas subsidies in Title II at $24 billion over ten years.