Thursday, February 28, 2008

Renewables Win, Oil Loses in House Bill

Well its only a matter of time before American's have to start paying what the rest of the world does for gas no matter who we steal it from. DIm Son has promised to Veto it.
From Matter Network

The House of Representatives passed a bill that would remove tax breaks of up to $18 billion for the oil and gas industries and transfer the money to supporting renewable energy.
The measure passed by 236-182 and would extend and provide new tax incentives for using renewable energy from wind, solar, biofuels, geothermal and others.

The Senate rejected two similar measures last year, and this time may be not be any easier. Oil finished over $100 a barrel, and Republicans fear that ending the tax credits for oil would push prices higher. However, many oil companies including ExxonMobil have recorded record profits during the past few years, so you can also argue that additional costs need not lead to a price increase.

President Bush has already said he would veto this type of legislation, so any legislation would likely have to be modified to become law.

The U.S. is far behind other nations in adopting renewable energy which has proved to create jobs and stimulate the economy. While there might be some short term pain for vehicle owners, this overdue law could very well stimulate the economy more than the recent stimulus package that passed.