In a letter today to Ways and Means Chairman Dave Camp, Committee Democrats urged an end to unjustified tax breaks for Big Oil and asked the chairman to schedule a mark up in the near future to consider such a measure. The letter comes as gas prices have surged above $4 a gallon in many parts of the country and the Big Five reported a combined $32 billion in first quarter profits, huge gains from a year ago.
A copy of the letter, signed by all 15 Ways and Means Committee Democrats, can be viewed here:
Dear Chairman Camp:
We are writing to urge you to schedule a mark up in the near future to consider legislation to repeal tax subsidies for large integrated oil companies.
As you know, Speaker Boehner recently said that Big Oil is going to pay its "fair share in taxes." The Big Five oil companies reported a combined profit of $32 billion in the first quarter of 2011 alone. Repealing the three largest tax breaks for the Big Five oil companies would raise billions of dollars a year. More than a billion dollars a year of that comes from one tax break enacted under the last Republican Majority. This tax break, the Sec. 199 domestic manufacturing deduction, should never have benefited the Big Five in the first place.
At a time when our constituents are feeling the pain of rising gas prices, it is unjustifiable that our tax code subsidizes Big Oil to the tune of billions of dollars a year. The Committee has a responsibility to ensure that our tax system is equitable, and we urge you to start by eliminating unjustified subsidies for large integrated oil companies.