John Boehner Open To Repealing Oil Company Tax Breaks (VIDEO)

WASHINGTON -- House Speaker John Boehner said Monday that Congress should "take a look at" repealing the multibillion-dollar tax subsidies enjoyed by the major oil companies.

The Ohio Republican told "ABC World News" that the government is low on revenues and that oil companies "ought to be paying their fair share." A gallon of gasoline exceeds $4 in some parts of the country.

"We certainly ought to take a look at it," Boehner said. "We're at a time when the federal government's short on revenues. We need to control spending but we need to have revenues to keep the government moving."

For example, Boehner said big oil companies don't need the so-called oil depletion allowance, but that taking it away from smaller producers would mean even less domestically produced oil. The allowance allows producers a tax deduction comparable to the break given manufacturers for depreciation of the value of an investment in plants and equipment.

Boehner is the most powerful Republican in Washington and his remarks could signal a significant change of heart. Republicans have blocked attempts by Democrats to curb oil company subsidies.

Boehner did not endorse the idea, however.

"I want to see the facts. I don't want to hear a bunch of political rhetoric," Boehner said. "I want to know what impact this is going to have on job creation here in America."

Cutting tax breaks for oil companies also could be part of any effort to overhaul the extraordinarily complicated federal tax code. Any tax reform effort would curb tax breaks in exchange for lowering personal and corporate income tax rates.

Boehner also said again that any move this year to increase the federal government's ability to borrow money to meets its obligations must be accompanied by significant cuts in spending.

"I believe it's responsible to increase the debt limit," Boehner said. "It's time to cut up the credit cards. And that means that we've got to have real cuts in spending. And we're not going to be talking about billions here. We're going to be talking about trillions."

WATCH:

Comments

[Ellen Parsons]

11:27 AM on 04/27/2011

So, when we get to the most desperate times, the republicans finally understand how deeply in trouble our country is. Maybe they might go one step farther and see that people who enjoy incomes over $250,000 need to pay their parts also. Wake up people. You are ruining our country with your greed.

[Suedi52]

10:52 AM on 04/27/2011

Logic would dictate that removing subsidies will cause higher gas prices. We'll see. The TRUE reason for higher gas prices is devaluing of the dollar by the Fed and the war against oil drilling. The EPA just stopped Shell oil from drilling in Alaska for a potential 27 billion gallons. We are letting Brazil drill in the gulf but not us. Are we stupid? Why are we letting a minority of greenies to affect our daily lives? This is hurting the POOR and middle class which Obama is purporting to want to help. All lies.

[nothingchanges]

09:42 AM on 04/27/2011

I suspect this is politispeak. It would be unethical, if not illegal, to solicit the oil industry directly for campaign funds.

"The Ohio Republican told "ABC World News" that the government is low on revenues and that oil companies "ought to be paying their fair share." A gallon of gasoline exceeds $4 in some parts of the country. "We certainly ought to take a look at it,"

Watch and see just how much campaign money suddenly appears from the energy sector into Republican coffers in the next few days. I suspect it will have a great deal to do with how hard they "look", and what they "see".

[Ellen Parsons]

11:29 AM on 04/27/2011

It doesn't matter how much money they have in their coffers if they don't start doing real things to help American citizens instead of their own greedy selves. I hope they will be voted out in droves.....

[waltzacrosstexas]

11:54 PM on 04/26/2011

"...take a look at it..." sounds like some code!

[Bat Wrangler]

11:30 PM on 04/26/2011

Boehner said "Ttke a look at" he didn't say he'd definitely commit. It's just Washingtonspeak. This guy will find a way to worm out of what he said. The oil industry and its lobbyists are too powerful. They simply buy-off our Congress. It's the American way.

[LaLaLand1973]

11:16 PM on 04/26/2011

I'm calling BULL**** on this! Don't believe the hype!

[LightShadow62]

10:52 PM on 04/26/2011

Saying he is open to it is not the same as actually repealing it.

[jsanti7]

10:32 PM on 04/26/2011

I doubt he is sincere ..oil pays his greens fees and bar tab ,,,he will never do anything for the regular people but subjugate them to the corporate will. Just waiting for the oil company checks on the congress floor pass out event.

[bleubunny]

11:01 PM on 04/26/2011

He's asking the oil companies for more bribe money.

[jsanti7]

11:11 PM on 04/26/2011

very astute that you interpreted the cryptic message in John Boehner, messaging.

[Ellen Parsons]

11:33 AM on 04/27/2011

It should be illegal for any of those who serve in the government to benefit from money from any organization.

[apiazza]

08:38 PM on 04/26/2011

It's a setup to somehow make the President look bad.

[foxynoise]

07:55 PM on 04/26/2011

In the mid 70's, wall street lawyers wrote tax laws for Saudi Arabia and key provisions in the U.S. tax code. The Saudi's changed their royalties - an expense for the oil companies - to a tax. U.S. oil companies then deducted the new tax - dollar for dollar - from their U.S. taxes. This clever tax loophole gave both the oil companies and the Saudi's what the wanted. The Saudi’s received more money for their oil and the oil companies instantly paid astronomically fewer U.S. taxes. And the American tax payer? Well, he has picked up the wealth transfer and the oil companies share of taxes ever since. If one wants to eliminate the deficit and national debt almost overnight - eliminate or drastically alter the foreign tax credit.

[Raccoon1]

07:04 PM on 04/26/2011

Next, let's do Agri-Corp.

[Albertmum]

06:54 PM on 04/26/2011

Seriously? I didn't accidentally click the entertainment tab?

[djairae]

06:23 PM on 04/26/2011

He says he is in favor of it NOW. When it comes time to pass legislation, He will backpedal, dissemble, and cave like a Massey Energy mine. You can always tell when he is lying because his lips are moving.

[ROR]

07:38 PM on 04/26/2011

LMAO!!!!! Fanned!

[jsanti7]

10:35 PM on 04/26/2011

ouch... but the truth does hurt on occasion #2

[markscoular]

06:21 PM on 04/26/2011

Mr. "I never turn down a bribe/campaign contribution" Boehner is only sending a note tot the oil companies to poby up contributions. He did the same scam on Wall Street.

This guy is the worst example of pandering for money in the House.

[therealone]

05:52 PM on 04/26/2011

Who cares about domestically produced oil? It's not like it comes back to us. It's put on the global market by multinational corporations and sold to the highest bidder.

[Raccoon1]

07:05 PM on 04/26/2011

A lot of that oil from Alaska, (and future oil) makes a left turn to Japan on it's way down to the lower 48.