The President’s proposed budget steps ups its attacks on the oil industry in the name of green energy.
The budget removes over a dozen fossil fuel industry tax credits to the tune of more than $45 billion dollars. The administration explained the elimination is meant to prevent further investment in fossil fuel energy sources.
“These oil, gas, and coal tax preferences distort markets by encouraging more investment in the fossil fuel sector than would occur under a neutral system,” the Department of the Treasury wrote in its general budget explanation.
“This market distortion is detrimental to long-term energy security and is also inconsistent with the Administration’s policy of supporting a clean energy economy, reducing our reliance on oil, and reducing greenhouse gas emissions.”
The cuts come as Russia’s invasion of ukraine continues to upend global energy markets. Crude oil prices are still well over $100 a barrel and gasoline prices are at record highs. The average cost for a gallon nationwide hit $4.24, up nearly 50% from last year.
Republicans met the proposal with outrage.
“President Biden wants to spend more taxpayer dollars on his green energy schemes instead of increasing American energy production to solve the energy crisis he created,” John Barrasso (R-WY) said in a statement. “The president’s priorities could not be more out of touch with families in Wyoming and across the country.”
The White House has not responded to a request for comment.