[Congressional Record Volume 169, Number 45 (Thursday, March 9, 2023)]
[Extensions of Remarks]
[Page E203]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          INTRODUCTION OF THE END OIL AND GAS TAX SUBSIDES ACT

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                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                        Thursday, March 9, 2023

  Mr. BLUMENAUER. Mr. Speaker, today I introduced the End Oil and Gas 
Tax Subsidies Act of 2023. This legislation eliminates nearly a dozen 
of the most egregious tax breaks enjoyed by the oil and gas industry. 
President Biden proposed a similar initiative in his Fiscal Year 2024 
budget.
  The climate is changing. This fact is indisputable, as is the fact 
that humans are the primary cause of the changing climate. The United 
States emitted nearly 6 billion tons of greenhouse gases in 2020 and 
the largest share of greenhouse gas emissions comes from the combustion 
of fossil fuels.
  Despite consistent profitability, fossil fuel companies receive 
billions of dollars in federal tax breaks and subsidies, which 
underwrite the costs of continued oil and gas production. These forgone 
revenues undermine the United States' ability to combat the climate 
crisis and invest in critical initiatives like education, housing, 
infrastructure, and healthcare.
  Recent analysis released by the Stockholm Environment Institute found 
that just two oil and gas tax subsidies--the expensing of intangible 
drilling costs and the percentage depletion allowance--increased the 
value of new oil and gas projects by more than $20 billion in some 
years. These two subsidies alone helped spur and sustain the shale 
development boom in the United States. Follow-up analysis examining the 
impacts of continuing these subsidies found that the subsidies increase 
average rate of return by 55 percent to 68 percent and more than 96 
percent of the subsidy value goes to excess profits.
  Oil and gas tax subsidies are unnecessary and a wasteful use of hard-
earned taxpayer dollars. I look forward to working with my colleagues 
to rid them from the tax code once and for all.

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