Oil Industry Tax Breaks Face Fiscal Cliff

Oil Industry Tax Breaks Face Fiscal Cliff

Republicans and Democrats may end some of the the oil industry’s biggest tax breaks during the fiscal cliff negotiations in Congress. 

House Speaker John Boehner (R-Ohio) has indicated oil industry tax breaks will be on the table during the upcoming fiscal cliff negotiations.

“The details will have to be negotiated. Not going to speculate on what a final package may look like,” a Boehner spokesman  told The Hill.

The White House and non-oil state Democrats have targeted have targeted the “Big Five” oil companies — like Chevron and Exxon — but all of their attempts at taking away tax breaks for “Big Oil” have failed. 

Capitol Hill Democrats and environmentalists, believe they can succeed this year and are gearing up to use Obama’s reelection to target the oil industry. 

Those who oppose the subsidies — like Oil Change International — will launch a TV and online ad campaign to call for an end to the tax breaks. 

Meanwhile, The American Petroleum Institute (API) and others associated with the oil industry will counter with a TV and print ad campaign of their own, “aimed at shoring up support for the billions of dollars in deductions that companies receive on drilling costs, income from domestic projects and other areas.”

Moody’s, the ratings agency, on Monday forecast that since the Obama administration “believes the energy industry needs no assistance at a time of tight federal budgets and disputes over government spending,” the Obama administration “may try to end tax incentives” for “Big Oil.”

According to The Hill, the White House’s “fiscal 2013 budget plan called for raising roughly $40 billion over 10 years with a plan that would hit ‘Big Oil'” and even independent producers.