Kaine Supports Ending Tax Breaks For Top 5 Oil Companies

Governor Tim Kaine today is urging the U.S. Senate to pass the Repeal Big Oil Tax Subsidies Act that would end tax breaks for the five largest oil companies.

At 5:30 p.m., the U.S. Senate is expected to vote on the Act, and to use the money instead to extend for one year expiring energy tax provisions for biodiesel, cullulosic ethanol and alternative fuels and to reduce the deficit. About $40 billion over five years could be saved. Pres. Obama made a call to end these subsidies during his State of the Union address.

Last year, BP, Chevron, ConocoPhillips, ExxonMobil, and Royal Dutch Shell Group made a record $137 billion, and every additional penny they charge at the pump increases their profits by $200 million dollars per quarter, said the Democratic Policy and Communications Center. All five get tax breaks through the Act.

"Giving tens of billions in taxpayer dollars to companies that are reaping record profits is simply a waste of taxpayer money at a time when we should be looking for ways to reduce our spending, and a backward approach to our energy future," Kaine said. 

. She was joined by Virginia Senator Bryce Reeces and Virginia Delegate Mark Dudenheffer, both freshman state Republicans. They made no mention about repealing tax subsidies for the top-five oil companies, but criticized Kaine and Obama for stonewalling the Keystone Pipeline project. In the past, George Allen has voted to protect tax breaks for oil companies

"While there is no immediate solution to high gas prices, there is immediate action we can take to ensure we continue on a path toward energy independence, and this bill is the right next step," Kaine said.