Following up on the previous post concerning penalizing oil companies in order to help research and development of renewable fuel sources, an addition to the previous bill would hit oil companies for $29 billion in taxes if it gets passed.

The massive tax package, double what Democrats had discussed as recently as last week, is “designed to promote clean and sustainable energy,” said Sen. Max Baucus, D-Mont., chairman of the Finance Committee that approved the measure by a 15-5 vote.

Sen. Jon Kyl, R-Ariz., said the taxes on the large oil companies - most of the provisions exempt smaller producers - “will almost certainly lead to gas price increases” as oil companies pass on the added cost. “You can’t raise taxes … by $29 billion and not expect gas prices to increase,” he said.

On that second point, all I have to say to Senator Kyl is that as long as gas prices stay nice and low, there will be little incentive to move away from oil. There is this odd claim that it seems some are making, that we can both keep gas prices nice and low and then move on to other fuels as though anyone would ever make the jump if the pump price stays low. Ain’t happening.