President Biden just teased a plan for fossil fuel companies that would send already soaring gas prices even higher.
Biden called, again, for an end to tax breaks for fossil fuel companies. The policy shift proposed by the out-of-touch Democrat would remove incentives for U.S. oil firms to boost production at a time when gas prices in the United States have risen to seven-year highs and are projected to continue their skyward climb.
Biden said: “If we end tax breaks for fossil fuels and make polluters pay to clean up the messes they have made, that would raise $90 billion.”
“I’m not asking them to do anything that is unfair. Just not going to subsidize them anymore.”
Biden appeared to be referencing provisions in his $6 billion budget proposal for fiscal year 2022, which seeks to repeal 13 different credits, deductions, and other special measures that are targeted to encourage oil, gas, and coal production.
“These oil, gas, and coal tax preferences distort markets by encouraging more investment in the fossil fuel sector than would occur under a more neutral tax system,” the proposal states.
“This market distortion is detrimental to long-term energy security and is also inconsistent with the Administration’s policy of supporting a clean energy economy, reducing our reliance on oil, and reducing greenhouse gas emissions.”
A Treasury Department report on Biden’s Made in America Tax Plan estimated that eliminating the subsidies for fossil fuel companies would boost government tax receipts by more than $35 billion in the coming decade, while citing biased research that questionably claimed this would somehow have “little impact on gasoline or energy prices for U.S. consumers and little impact on our energy security.”
Biden’s remarks come as many economists have been raising the alarm about inflationary pressures and as gas prices have surged across the nation to levels not seen since 2014.
As of July 5, the national average for a gallon of regular gasoline has risen to $3.22, a seven-year high, according to the U.S. Energy Information Administration.
Patrick De Haan, head of petroleum analysis for GasBuddy, told Fox News in a recent interview that he believes U.S. drivers are unlikely to see relief from high gas prices anytime soon, predicting that the typical seasonal decline in prices won’t kick in until October, and when it does, it will be modest.
Asked whether Biden’s climate change policies were driving gas prices higher, De Haan said it’s unclear whether that’s a factor in the short-term, but in a longer time horizon, he predicted that “absolutely, the Biden administration’s push to go green will probably have more of an impact.”
Biden has embarked on an all-out-assault against the fossil fuel industry since taking office, and Americans are feeling the effects of his efforts.
Since taking office, Biden has canceled permits for the Keystone XL pipeline and paused leases for new oil and gas drilling on federal lands, while vowing to end fossil fuel subsidies and to lower U.S. greenhouse gas emissions by 50 percent by 2030.
Republicans have blamed Biden and his policies for the rise in gas prices.
“As millions of Americans travel this holiday weekend, they are feeling the cost of Biden’s policies at the pump,” Republican National Committee Chair Ronna McDaniel wrote in a July 3 Twitter post. “Gas prices are at their highest level in 7 years.”
North Dakota, meanwhile, has announced they are suing President Biden over his attack on the industry, specifically due to the administration canceling a planned auction of oil and gas leases.
Under the Mineral Leasing Act, lease sales must be held at least once a quarter in each state where eligible lands are available. But the lease sale scheduled for March was canceled and a regularly scheduled sale pegged for June was not held.
North Dakota officials said in the lawsuit, filed in federal court, that the illegal cancellations appeared to be in response to a Biden executive order that directed the secretary of the Interior to “pause new oil and natural gas leases” provided doing so was consistent with the law.
“Ignoring the Executive Orders admonition to act consistent with applicable law, the Federal Defendants’ actions violated several Federal statutes and exceeded their limited scope of discretionary authority,” the 30-page suit states.
The impact of the actions was compounded because the blocked development of federal lands has led to a delay in developing state and private interests, the suit added.
“I have taken this action to protect North Dakota’s economy, the jobs of our hard-working citizens, and North Dakota’s rights to control its own natural resources,” said North Dakota Attorney General Wayne Stenehjem, a Republican, in a statement announcing the filing.
Author: Matthew Witten