Reid Says Senate Will Consider Legislation Repealing Oil Subsidies

Majority Leader Harry Reid (D-NV) “said Wednesday that the Senate will turn quickly to legislation to repeal billions of dollars in government subsidies enjoyed by big oil companies every year,” the AP reports.

Majority Leader Harry Reid, D-Nev., said the Senate will consider as early as next week Obama’s proposal to repeal the tax breaks. Obama wants to use that $4 billion a year to invest in alternative energy in an effort to reduce the country’s dependence on foreign oil.

"There’s no necessity for these subsidies," Reid told reporters. "The companies have broken all records for profits."

It’s not at all clear “that Senate Democrats would be able to overcome a certain GOP filibuster of legislation to repeal the tax breaks, which include a deduction for drilling costs and oil and gas depletion allowances that give producers a tax deduction comparable to the break given manufacturers for depreciation of the value of an investment in plants and equipment.”

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Filed under Energy, Party Leadership, Taxes

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