Senate Democrats unveil new energy tax plan

Democrats in the U.S. Senate on Wednesday unveiled a new energy package that would revoke $17 billion in tax breaks extended to big oil companies like Exxon Mobil Corp and slap a 25 percent windfall profits tax on firms that don’t invest in new energy sources.

The oil companies are making billions in profits every year and we’ve been giving them a tax break.  I didn’t understand it last year, or the year before, or the year before that.  I don’t understand it now.  Some politician is going to argue that they need the money for petroleum exploration, bribes to politicians in the form of campaign contributions, developing new energy sources, and so on.  Let them plow some of their obscene profits back in to their company instead of expecting a handout.

Even if they developed new energy sources, does anyone over the age of 8 really think that they would be made available to the general public so long as the oil companies can keep gouging us and raking in the money?

A solution I could support would be to take that 25 percent windfall profits tax and use that as low interest loans to startups who are really interested in making the U.S. energy independent.  This would include not only power generation but also transportation development.  Or how about tax credits to people who install solar or wind systems in their home?

The Consumer-First Energy Act — assembled by Senate Majority Leader Harry Reid and other key Democrats — would also stop the Energy Department from filling the Strategic Petroleum Reserve until crude oil prices average $75 a barrel or less for 90 days.

I’m not too sure about this provision.  The Strategic Petroleum Reserve is the country’s emergency energy bank account.

The bill would have to pass the Senate and be approved by the U.S. House of Representatives and White House before becoming law.

Big oil doesn’t need to worry; this bill is never going to get through the White House.  GW is bought and paid for.