Biden budget targets US fossil fuel subsidies | – #Biden #budget #targets #fossil #fuel #subsidies
8 March – USA President Joe Biden, according to a document seen by Reuters, oil and gas industry subsidies cancellation a budget that will offer will and fossil fuel companies profitable tax will revive the perennial debate about receiving concessions.
While the proposal has little chance of passing a divided Congress, it comes from a White House that has repeatedly criticized Big Oil for record profits at a time of high consumer energy costs following Russia’s aggression in Ukraine. political is a signal.
USAHere are some details on fossil fuel subsidies:
WHAT ARE THEY WORTH?
USACalculating the cost of subsidies to the fossil fuel industry is complicated because the incentives are US tax covers the code, but estimates in the year 10-50 billion dollars varies between
Tax ratepayer advocates and environmental groups argue the subsidies are misplaced at a time when the federal government is trying to shift the economy to cleaner forms of energy to combat climate change.
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The oil industry believes that support is needed to ensure continued investment and reliable supply.
WHAT IS INCLUDED IN SUBSCRIPTIONS?
US oil and gas subsidies include incentives for domestic production, write-offs and deductions related to foreign production and income, and approved accounting methods that can reduce the declared taxable value of assets.
For example, special U.S. domestic production tax credits, called intangible drilling costs, allow producers to deduct most of their costs of drilling new wells. The Joint Committee on Taxation, a nonpartisan panel in Congress, believes that its cancellation making 10 13 to the state treasury during the year billion dollars can earn.
Another tax break that allows independent producers to recover the costs of developing dwindling oil gas and coal reserves, the panel said. 10 about 12.9 over the year billion dollars can earn income.
WHAT DID BIDEN SAY?
Biden before taking office, he pledged to get rid of fossil fuel subsidies as part of a multi-pronged effort to combat climate change that included halting new drilling on public lands.
It was not possible to fulfill these promises. First, they require an act of Congress, and Republicans and some Democrats oppose ending fossil fuel subsidies. Second, increased energy after Russia’s aggression against Ukraine prices Biden’s not less, but more oil and gas caused him to demand.
Ending oil and gas subsidies is not a new idea, but it has always been difficult: the past the president Barack Obama also wanted to give up tax breaks for fossil fuels to show the world that the United States is serious about accelerating the transition to clean energy. combating climate change.
But even with a Democratic majority in the Senate during Obama’s first six years in office, he was unable to kill the subsidies.
WHAT ARE OTHER COUNTRIES DOING?
Keeping consumer energy prices affordable is a top priority for many governments. That’s why many countries, from Japan to Brazil, introduced or increased subsidies last year to keep consumers from skyrocketing prices.
According to estimates by the International Energy Agency, consumption subsidies for fossil fuels will double to $1 trillion globally in 2022.
Reporting by Richard Valdmanis; Edited by Simon Webb and Sonali Paul
Our standards: Thomson Reuters Trust Principles.
2023-03-09 05:42:25
Source – reuters
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