Speaking of Class Warfare…

One of the most absurd things to come out of American politics in recent months is the allegation that the president’s proposal to raise taxes on the wealthiest Americans – bringing them back to the levels they enjoyed under Clinton -- amounts to “class warfare.”

In the Huffington Post last week, PFAW’s Michael Keegan called the GOP’s renewed cries of “class warfare” both “ironic and cynical.”

If you want to see what class warfare really looks like, you need look no further than Texas, where a group of oil companies has successfully lobbied to have a government panel re-examine a very large tax break that they were previously denied, and are now on the verge of receiving a $135 million gift from the state. Who’s paying for that gift? Public schools.

Here’s how the oil companies, led by Valero, are wrangling the refund from the Texas Commission on Environmental Quality, according to the AP:

Valero first asked for the refund for six of its refineries in 2007, and wants payment retroactive to that year. Since then, at least four other companies have asked for the same retroactive refund.


Valero argues the units should be exempt under a Texas law that says industrial plants don't have to pay taxes on equipment purchased to reduce on-site pollution. The law saves companies millions, and is meant to encourage investment in new technology.


At first, the request was denied. The commission's staff said the hydrotreaters reduce pollution in diesel and gas, not necessarily at the plant. In fact, staff said, the hydrotreaters actually increased sulfur dioxide pollution near the refineries because the toxic gas is now burned off in a flare.


Valero appealed, and the panel's chairman, Bryan Shaw, said last April that the Legislature likely intended a broader interpretation of the law. He instructed his staff to research whether they could award partial exemptions to Valero. Shaw declined to be interviewed for this story, saying it could present a conflict because the issue will be brought before him again.


Shaw, the environmental commissioner who encouraged the panel to take a new look at the oil company tax refund, was hand-picked for his post by Gov. Rick Perry. He’s an odd choice to head an environmental quality panel – as Mother Jones reported last week, he’s a climate change skeptic who has a long history of siding with industry over environmental groups.


But Gov. Perry’s ties to the oil industry run deep – since 1998, he’s raked in $11 million in campaign contributions from oil and gas companies, including $147,895 from Valero, the company that’s leading the effort to get the $135 million tax refund.


While oil companies enjoy expensive access to the governor and an ally at the top of one of the committees charged with holding them accountable, it’s the state’s children who are breathing polluted air and whose schools are being asked to pay for new corporate tax breaks. From AP:


Now, the AP's analysis shows, the Pasadena Independent School District may have to refund $11.3 million to two refineries if commissioners grant the request.


Early Monday, Gonzales and others handed out fliers, collected petition signatures and offered $10,000 cookies and brownies at a mock "bake sale" designed to raise awareness about the money at stake. Eight Houston schools planned similar mock sales for later in the day.


The mom-turned-activist said she learned about the refineries' requests while unsuccessfully lobbying earlier this year to convince Perry and the Legislature to dip into the state's so-called rainy day fund to ease cuts to the schools.


Gonzales lives near a miles-long stretch of refineries, where massive pipes and stacks light the night like skyscrapers do in other cities. An intense, burnt chemical scent hangs over the town.


"You smell it. That's what we're known for. Stinkadena because of the refineries," Gonzales said. "There are days when we can't go out because our children's asthma is that bad ... and then they want money back?"
 

PFAW