Congressional Dems Urge Elimination of Oil and Gas Tax Breaks

Fifty-four Congressional Democrats signed an August 30, 2021 letter to House Speaker Nancy Pelosi urging that the Build Back Better infrastructure legislation soon to b taken up include a repeal of $121 billion in subsidies for the fossil fuel industries, including tax breaks for foreign oil and gas income.

The letter cited the International Monetary Fund, which ranks the U.S. second in the world in its support of the oil and gas industries.  While the benefits of the tax breaks mainly go support industry profits, the external costs of fossil fuels felt in public health, infrastructure damage, premature mortality, and increased storms and disasters are shifted to taxpayers.

Ending fossil fuel subsidies would cause the cost of these fuels to rise relative to renewables, making alternative fuels more desirable.