Democrats Propose Cuts to Subsidies and Tax Breaks for Oil Companies

In a letter sent to Speaker John Boehner, Senate Democrats propose cutting “unneeded subsidies and tax breaks for oil companies that are making record profits,” according to a joint press release.

They say this move could save “at least $20 billion over 10 years.”

Some background:

The House and Senate must agree by March 4 on a spending measure to continue funding the government. House Republicans have said they plan to enact major cuts below current spending levels and last week, House Budget Chairman Paul Ryan set a goal of $32 billion below current levels. House Republicans have yet to specify which programs would be reduced in order to meet this goal, but are expected to begin doing so this week.

The full text of the letter is linked here.

Update: Senator Mark Begich (D-AK) said today that he will “fight an effort by some Senate Democrats to end incentives for domestic energy production,” according to a press release from his office.

“While I recognize the need to focus on reducing the deficit, eliminating incentives for energy companies to the tune of $30 billion threatens our energy and national security. It would cost thousands of jobs in Alaska and across the country,” Begich said. “Energy companies are among the businesses investing and creating jobs at a time when our country needs both. I will fight any measure that ends these incentives.”

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Filed under House of Representatives, Taxes

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