WASHINGTON -- Sen. Bob Casey today called for a hefty new tax on oil company profits that would fund a program aimed at helping low-income families pay for their transportation costs.
The Pennsylvania Democrat also said he would seek the repeal of major tax breaks for oil companies. That money, he said, would help finance research into alternative fuel sources.
Mr. Casey, joined by fellow freshman lawmakers, was critical of President Bush's handling of energy issues, saying the administration has been too close to oil companies and had done little to help families struggling with high gas prices.
"Here's what you hear from the Bush-Cheney big oil conglomerate: They say you have it wrong. Everything is wonderful. We have to continue the tax breaks for millionaires," Mr. Casey said. "And if you happen to be a billionaire who owns an oil company, you get another break -- you get big oil tax credits and subsidies."
Mr. Casey said gas prices have risen by 20 cents a gallon in the past month.
His proposed tax, part of legislation introduced today, would kick in when oil prices top $50 a barrel. At that point, the government would tax 50 percent of an oil company's profits. Oil prices currently are about $65 per barrel, Mr. Casey said.
The new tax revenue would fund a program that the senator compared to LIHEAP, the Low Income Home Energy Assistance Program. It would help low-income families pay for gas for their cars.
More details in tomorrow's Pittsburgh Post-Gazette.
