3 people stand between the US and a sensible energy policy, the radical notion that subsidies should support up and coming, good for the environment renewable energy instead of the oil industry.
But Republicans complained that it was too harsh on the oil industry and could lead to oil companies reducing investments in new oil refineries and production. They also said that it could lead to higher prices for consumers.
“When you put a tax on a business it gets passed on to consumers,” argued Sen. John Kyl, R-Ariz. “Instead of reducing gasoline prices, this bill is going to add to the cost of gasoline.”
Kyl had earlier sought to sidetrack the tax measure, but that effort failed.
The bill’s supporters dismissed suggestions that the new taxes on an industry that has had record profits in recent years would cause either less oil production or lead to higher prices at the pump.
Oil companies earned $111 billion in profits last year and at that rate stand to earn $1 trillion over the 10 years covered by the tax package, said Sen. Jeff Bingaman, D-N.M., rejecting suggestions that “this is an undue burden” on oil companies.
Kyl claims that the point of energy legislation is to reduce the cost of gasoline to consumers. Really? I thought the point was to come up with a coherent policy that maximizes the efficiency of energy use and minimizes its impacts.