Treasury puts a number on its fossil tax plan
The Treasury Department estimates its plan to end subsidies for fossil fuel companies would bring in over $35 billion in federal revenue over 10 years.
Driving the news: "The main impact would be on oil and gas company profits. Research suggests little impact on gasoline or energy prices for U.S. consumers and little impact on our energy security," officials said in a report on the wider White House tax policy proposal.
- The White House has not spelled out precisely what tax code provisions that affect fossil fuel companies they want to change.
- But past Democratic proposals have taken aim at areas like write-offs for certain drilling costs and the oil-and-gas industry's eligibility for deductions on manufacturing income.
- The White House is looking to boost tax revenue from the oil industry while expanding tax incentives for renewable power, creating new transmission and storage credits and more.
The other side: The oil-and-gas industry argues that it doesn't get special treatment under the tax code, and instead uses provisions aimed at spurring a wide range of business investment.
Via Reuters, the American Petroleum Institute argues that "Targeting specific industries with new taxes would only undermine the nation’s economic recovery and jeopardize good-paying jobs, including union jobs.
Go deeper: Biden Tax Plan Targets Fossil Fuel Subsidies Worth $35 Billion (Bloomberg)