RELEASE: KHANNA, JAYAPAL, AND CONGRESSIONAL PROGRESSIVE CAUCUS LEADERS CALL FOR ELIMINATING FOSSIL FUEL GIVEAWAYS IN THE BUILD BACK BETTER ACT
Washington, DC – September 22 , 2021 – Leaders in the Congressional Progressive Caucus (CPC) led by CPC Deputy Whip Rep. Ro Khanna (D-Calif.) and CPC Chair Pramila Jayapal (D-Wash.) last night urged House Speaker Nancy Pelosi and Majority Leader Steny Hoyer to include the repeal of domestic fossil fuel subsidies in the Build Back Better Act.
“We were dismayed to see that the current version of the Build Back Better Act in the House is missing most of the domestic fossil fuel subsidies repeal passed by the Senate Finance Committee earlier this year,” the letter reads. “There is no reason that the fossil fuel industry deserves special privileges over other businesses.”
The Representatives called on House Leadership to repeal the following subsidies:
- Deduction for Intangible Drilling Costs
- Percentage Depletion for Oil and Gas Wells
- Last-In, First-Out (LIFO) Accounting for Fossil Fuel Companies
- Tar Sands Tax Loopholes.
“Fossil fuel subsidies should be repealed because, instead of creating jobs, they widen the profit margins of fossil fuel companies, with ‘over 96% of subsidies going directly to profits over and above the minimum investment hurdle rates.’ The federal government and state governments give the fossil fuel industry over $20.5 billion in support each year through tax breaks, inadequate royalty rates, and direct funding.”
The letter was signed by CPC Chair, Rep. Pramila Jayapal (D-Wash.), CPC Deputy Whip, Rep. Ro Khanna (D-Calif.), CPC Whip, Rep. Ilhan Omar (D-Minn.), CPC Member, Rep. Earl Blumenauer (D-Ore.), CPC Chair Emeritus, Rep. Barbara Lee (D-Calif.), and CPC Vice Chair Marie Newman (D-Ill.). Today’s letter comes after over 50 Members of Congress urged leadership to include the repeal of fossil fuel subsidies in the Build Back Better Act.
Click here to read the letter.
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