Oil industry bashes White House budget plan

The White House linked repeal of the oil industry tax breaks to development of alternative energy. “Repealing fossil fuel tax preferences helps eliminate market distortions, strengthening incentives for investments in clean, renewable, and more energy efficient technologies,” the budget proposal states.

The proposal also cites last year’s pledge by G-20 nations to phase out fossil energy subsidies and claims the repeal of subsidies would help slow greenhouse gas emissions.

“In addition, removal of market distortions created by fossil fuel subsidies will lead to a more efficient allocation within the energy sector as well as across sectors, likely with positive impacts on National output and gross domestic product,” the plan states.