The Obama administration is trying to eliminate a number of tax incentives that benefit the oil and gas industry and impose new fees on the sector. This strategy is part of a larger effort to pay for the recently proposed multi-billion dollar jobs bill and help cut the deficit.
The excise tax would be 9.7 cents per barrel of crude and would raise $19 billion. The administration has also proposed repealing a number of tax breaks that benefit the industry, with an estimated savings of $41 billion over 10 years.
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