Dems press supercommittee to go after oil subsidies

Tax credits that should be eliminated include the tax credit for refineries, which costs the United States over $1.3 billion over ten years and increases our dependence on tar sands oil, and broader tax subsidies, such as the “last in, first out” accounting for inventories that costs taxpayers $52 billion over ten years with oil and gas companies receiving the bulk of that subsidy.

Separately, Democratic ranking members from multiple committees are urging the bicameral, bipartisan supercommittee — which is seeking at least $1.2 trillion in deficit reduction over a decade — to keep a repeal of oil industry incentives on the table.

The members submitted their recommendations to the supercommittee last week.

They include a call by Oversight and Government Reform Committee ranking member Elijah Cummings (D-Md.) to remove tax breaks, such as the industry’s ability to claim a lucrative domestic manufacturing deduction.

Rep. Edward Markey (D-Mass.), the top Democrat on the Natural Resources Committee, urged the supercommittee to restrict royalty-free production on certain offshore leases and institute a fee on nonproducing leases. The ranking members’ submissions can all be found here.