December 8, 2006

AS NANCY BECOMES NEWT:

New energy leader unsure on oil tax cuts (JENNIFER TALHELM, 12/08/06, ASSOCIATED PRESS)

House Speaker-to-be Nancy Pelosi's plan to repeal tax breaks for oil companies in the first 100 hours of the new Congress could face roadblocks in the Senate.

Trying to do it in the first couple of weeks would be rushing things, Sen. Jeff Bingaman, the upcoming chairman of the Senate's Energy and Natural Resources Committee, told The Associated Press in an interview Friday.

Bingaman, D-N.M., who has been the committee's ranking Democrat and will become its chairman under a Democratic majority, expressed reservations about rolling back tax breaks enacted as part of the 2005 energy act that are aimed at encouraging domestic oil and gas production. He said hearings should be held before any such incentives are killed.

"The truth is these companies are able to drill wherever they see the best opportunity for their stockholders," he said. "If the tax incentives are changed in ways that cause them to go overseas to drill, I don't know that that's to our advantage. We need to have some hearings and look into it."

Pelosi spokesman Brendan Daly said the 100 hours timeframe applies to the House only.


You can't govern America from the House.

Posted by Orrin Judd at December 8, 2006 2:26 PM
Comments

Funny, given all the hoopla in the MSM, I thought that Speaker-apparent Pelosi was the new policy maker/chief administrator of the United States.

Posted by: Dave W at December 8, 2006 8:51 PM

The woman is looney. I doubt any oil company will hustle overseas because of it as most are already there. To remove the tax incentives will not help a single person in the US. Doesn't lower the price at the pump, etc. But it will hurt the Nations smaller operators and oil field workers. Some of the domestic marginals will simply be removed from the engineer's planning scope and deferred, or cancelled. The ill informed and unemployed will probably still give her three cheers for going after big awl.

Posted by: Tom Wall at December 9, 2006 3:08 AM

There are some people who have "magical" thinking. This theory is that somehow taxes are not a cost to a company, that the tax bill is different from the light bill and the rent. They are wrong---in the financial aspect every bill is just another cost.

All expenditures become part of the price of the product, whether the company writes to check out to IRS or ComEd. Raising the tax will cause the price to go up by a like amount.

Posted by: ray at December 9, 2006 9:10 AM
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