President Biden aims to cut federal tax breaks for the fossil fuel industry, a move met with resistance.
Lisa Friedman reports for The New York Times.
In short:
- President Biden's latest budget proposal marks his fourth attempt to eliminate tax breaks for the fossil fuel industry, aiming to cut $35 billion in subsidies over the next decade.
- Despite widespread criticism of these subsidies as wasteful, efforts to remove them face opposition from the oil industry, certain Democrats, and Republicans.
- The fossil fuel industry benefits from nearly a dozen tax breaks, with two major ones dating back a century, significantly lowering production costs and boosting profits.
Key quote:
"Everybody agrees fossil fuel subsidies are wasteful, stupid and moving things in the wrong direction."
— Michael L. Ross, professor at the University of California, Los Angeles
Why this matters:
Fossil fuel subsidies, amounting to billions of dollars globally, lower the cost of coal, oil, and natural gas, encouraging increased consumption and production of these energy sources. This accelerates greenhouse gas emissions, contributing to global warming and the extreme weather events associated with climate change.
Proposed EPA methane limits may help curtail 7,500 yearly deaths from oil and gas production sites.
