Casten Introduces 'People Over Petroleum Act' to Give $500 Cash to Americans Paid for by Repealing $6 Billion of Tax Subsidies for Fossil Fuel
Washington, D.C. — Today, U.S. Representatives Sean Casten (IL-06), Earl Blumenauer (OR-03), Mike Levin (CA-49), and Jennifer McClellan (VA-04) introduced the ‘People Over Petroleum Act' to deliver Americans a $500 direct cash rebate paid for by eliminating 11 of the most egregious tax subsidies flowing to fossil fuel companies.
Last year, fossil fuel giants doubled their profits to $219 billion while American consumers struggled to pay heating bills and fill up their gas tanks. Despite this, the IMF estimates fossil fuel companies receive nearly $650 billion a year in direct and indirect U.S. tax subsidies.
"The fossil fuel industry is not only destroying our planet, it’s kept afloat by the American taxpayer to the tune of billions of dollars every year,” said Rep. Sean Casten. “Big oil shouldn’t enjoy record profits while also receiving egregious subsidies. This isn’t just bad policy, it’s antithetical to free-market capitalism. By repealing $6 billion of the most egregious tax subsidies provided to oil and gas companies, we can give a $500 check to every American to help them pay their energy bills.”
"It’s time to end the big oil handouts,” said Rep. Earl Blumenauer. “It's particularly insidious that oil and gas executives are raking in record earnings while the cost of gasoline, groceries, and rent climb higher and higher for the American people.”
“Fossil fuel companies can no longer be allowed to make record profits while destroying our planet, all while receiving taxpayer subsidies and rewarding their executives and shareholders with record profits and stock buybacks,” said Rep. Mike Levin. “It is wrong and Congress must eliminate these subsidies and use the savings to help Americans make ends meet. Earlier this week, the Intergovernmental Panel on Climate Change released its latest report outlining how the health of our planet is in danger if we don’t act fast to curb the use of fossil fuels and dramatically reduce greenhouse gas emissions. Now is the right time to eliminate tax subsidies for fossil fuel companies, invest in clean energy, and provide a rebate to every American. We must put People Over Petroleum.”
“The oil and gas industries are reporting record-breaking, multi-billion-dollar profits at a time when climate scientists and experts warn we are facing a catastrophic climate emergency,” said Congresswoman Jennifer McClellan (VA-04). “There is no reason why the fossil fuel industry should be enjoying billions in subsidies while Americans struggle to make ends meet and our climate situation becomes more dire. The People Over Petroleum Act, formerly led by my predecessor, the late Congressman A. Donald McEachin, is commonsense legislation that will put money back into the pockets of hardworking Americans.”
Upon the bill's passage, the following 11 subsidies oil and gas companies currently enjoy would be eliminated:
- Amortization of geological and geophysical expenditures
- Producing oil and gas from marginal wells
- Enhanced oil recovery credit
- Intangible drilling and development costs in the case of oil and gas wells
- Repeal of percentage depletion for oil and gas wells
- Repeal of deduction for tertiary injectant
- Repeal of exception to passive loss limitations for working interests in oil and gas properties
- Reduction for qualified business income not allowed with respect to oil and gas activities
- Prohibition on using last-in, first-out accounting for oil and gas companies
- Modifications of foreign tax credit rules applicable to dual capacity taxpayers
- Clarification of tar sands as crude oil for excise tax purposes
Text of the People Over Petroleum Act can be found here.
Earlier this year, Reps. Casten and Blumenauer introduced the End Oil and Gas Tax Subsidies Act, which would eliminate nearly a dozen of the most egregious tax breaks that undermine our nation's ability to invest in renewable energy sources at the rate necessary to stave off the most catastrophic impacts of the climate crisis.
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