Mike Castle Exposed: Increased Corporate Taxes Against Oil Firms
Liberal Rep. Mike Castle (R?-DE) is no friend of the American business. In 2007, he voted again with his friends across the aisle to raise taxes against oil companies to extract oil in the Gulf of Mexico.
This bill would repeal tax cuts to oil companies and mandate that they pay a fee to remove oil from the Gulf of Mexico. It would also fund renewable energy programs. The act would repeal a tax break that oil and gas firms received in 2004. That break effectively lowered their corporate tax rates. It would also bar oil companies from bidding on new federal leases unless they pay a fee or renegotiate improperly drafted leases from the late ‘90s. Those leases did not require royalty payments on Gulf of Mexico oil production. Oil firms would pay a “conservation fee” for oil taken from the gulf. <br> <br> Additionally, the bill would set aside an estimated $13 billion to $15 billion in revenues over a five-year period for tax breaks relating to renewable energy sources, according to The Washington Post. <br> <br> The bill was designed to reduce the United States’ dependency on foreign oil by investing in alternative energy sources. However, critics say it actually would decrease domestic oil production so the country would rely more heavily on imported oil. <br> <br> The House passed the bill on Jan. 18, 2007, with a vote of 264-163. All House Democrats except one favored the bill. They were joined by 36 Republicans. The Senate must debate the bill. <br> <br> The Washington Post reported that the Bush Administration opposed repealing the tax break for oil companies when other manufacturing industries benefited from the 2004 reductions. It also frowned on forcing companies to renegotiate their Gulf of Mexico leases.
And Mike Castle thinks he is a friend of the businesses. His voting record speaks otherwise.