Let's End Polluter Welfare

At a time when we have more than $15 trillion national debt, American taxpayers are set to give away over $110 billion dollars to the oil, gas, and coal industries over the next decade. Clearly, we cannot afford it. When the five largest oil companies made over $1 trillion in profits in the last decade, with some paying no federal income taxes for part of that time, they certainly do not need it.

It is time we end this corporate welfare in the form of massive subsidies and tax breaks to hugely profitable fossil fuel corporations. It is time for Congress to support the interests of the taxpayer instead of powerful special interests like the oil and coal industries. That is I joined with Congressman Keith Ellison to introduce legislation in the Senate and the House called the End Polluter Welfare Act. Our proposal is backed by grassroots and public-interest organizations including 350.org, Friends of the Earth, Taxpayers for Common Sense, and many others.

It is immoral that some in Congress advocate savage cuts in Medicare, Medicaid, and Social Security while those same people vote to preserve billions in tax breaks for Exxon Mobil which is the most profitable corporation in America. It is equally obscene that as those members of Congress fight to continue never-ending fossil fuel subsidies worth tens of billions, they are working overtime to deny a one year extension for key sustainable energy incentives for the emerging wind and solar industries. Instead of passing strong legislation to help reverse global warming, Congress continues the giveaways to the 200-year-old fossil fuel industry even as that industry's carbon pollution wreaks devastation on our planet. Enough is enough.

While there have been attempts to remove some of these fossil-fuel subsidies in the past, our legislation is the most comprehensive ever put together in that it would end all of the tax breaks, special financing arrangements, and federal research support for fossil fuels. Our bill would make sure the fossil fuel industry pays its fair share by reforming royalties for drilling or mining on public lands or in federal waters. We end the loopholes that allow tar sands pipeline operators to avoid paying the oil spill clean-up tax.

It is important that the American people understand just how egregious these fossil fuel handouts are:

• A Tax Deduction for an Oil Spill? -- We all remember the BP oil disaster in the Gulf of Mexico, the worst oil spill in U.S. history. What is less well known is that BP is claiming a 9.9 billion tax deduction on the money they had to spend cleaning up their own mess and paying for damages they caused. That is absurd.
• They Manufacture What? -- Coal and oil lobbyists added fossil fuels to a bill aimed at helping American manufacturers, so they too could claim 'manufacturing' tax deductions. The added cost for taxpayers:12 billion over the next ten years.
• Good Enough for Big Oil, but not Clean Energy -- Most of us have not heard about Master Limited Partnerships. These special financing arrangements allow oil and gas investors to avoid paying certain corporate income taxes, but are not available to clean energy businesses. Ending this fossil fuel loophole not only starts to level the playing field for clean energy investment, it saves the government an estimated 2.4 billion over the next decade.
• Free Federal Oil and Gas Leases? -- Fossil fuel corporations are supposed to pay the government fair market royalties in exchange for the right to drill on public lands or in federal waters. But thanks to a loophole in federal law, some oil and gas corporations drilling in the Gulf of Mexico pay zero in royalties. The non-partisan Government Accountability Office estimated this could cost taxpayers up to53 billion over the life of these loophole leases.

These are just some examples of the obscene subsidies that the oil, gas, and coal industries reap from the government year after year. We know that with the enormous sums these industries spend on lobbying and campaign contributions - no doubt made worse by the new era of unlimited corporate campaign spending ushered in by Citizens United -- passing a bill like our End Polluter Welfare Act will not be easy. But we know too that all across our country, and across the political spectrum, the American people are angry and frustrated with a government beholden to the big money interests. They want their elected officials to stand up for the needs of working families and our environment, not the powerful special interests.

While it is true that the fossil fuel industry has a virtually unlimited supply of money and lobbyists in Washington, D.C., they still can be defeated. If the American people stand up and demand a budget which is fair and which finally requires the fossil fuel industry and other corporations to pay their fair share in taxes, we can defeat them. If the American people demand that we transform our energy system away from polluting fossil fuels, and to energy efficiency and sustainable energy, we can defeat them. With your help, we can defeat them. Join this fight by signing up as a Citizen Cosponsor of this legislation.

 

Follow Sen. Bernie Sanders on Twitter: www.twitter.com/SenSanders

Comments

[trusgold]

08:52 AM on 07/04/2012

On this Fourth of July 2012 I declare this "Bernie Sanders Day" A true American Patriot. of the highest order he is of the people, by the people and for the people. He is for all Americans not just 1% or 2%. Citizens United is an example of just what the Republicans want to do. Well they can try, but Meg Whitman, Linda McMahon, Carly Fiorina and all but Rick Scott lost elections. The Government up to now has not been for sale! I hope this is not going to be the year the the tide turns. How can we get rid of Citizens Units. One man giving $14 million to the Republican is not onne man one vote. Rick Scott may have bought one term, he won't get two.

[Sherrie Heckendorn]

02:00 AM on 05/31/2012

Signed that petition and so hope that others also take the time to sign. I have found over the last few months, just how much can be accomplished with petitions and emails and phone calls. I have seen good results on so many of the different causes. What was really good was to see all the corps that fled ALEC and still are. Please use your voice. We need everyone's voice, we are all equally important and it is possible to enact great change one comment at a time. Peace

[BigBearcatBill]

08:04 PM on 05/27/2012

I agree Bernie, the repub congress gets paid for passing gas out their mouth every day.

[S Andersen]

05:43 PM on 05/27/2012

Bernie Sanders, America's Senator.

[kjohney]

06:08 PM on 05/27/2012

I'd like to introduce a bill that would allow Bernie Sanders' name to be put on the ballot in my state too.

[cigi]

09:35 PM on 05/27/2012

I think Bernie is the Conscience of the Senate. He belongs on Mount Rushmore! Forget Reagan!

[trusgold]

08:53 AM on 07/04/2012

KJ

I second that motion.

[BillChatlain]

04:45 PM on 05/27/2012

When he says the American tax payer is giving away $110 billion dollars to the oil, gas and coal industry he really means they earned it and get to keep it. I love big oil they provide gasoline to burn in my truck. I also enjoy electricity to power my computer and my T.V. I also enjoy air conditioning. The government has done a few things I enjoy security from police protection ( I suppose ) fire protection in case my place burns ( which it never has ) the roads paid for every time I buy gasoline ( roads are the best thing government has ever done in my opinion ) other than that the government does little for me. Why do we continue to pay more for government we certainly do not get more for our money. A 3.5 trillion dollar government that borrows 1 trillion dollars is way to big. Can we cut the government? Why not? We did pretty good when the federal government was about 1 trillion dollars and I remember hearing how much money they waisted then. Or I guess we could just keep spending until the party ends and pay more for our gasoline to fund bigger government which is what this guy wants. Maybe he has relatives working for the government.

[civilbehavior]

08:39 PM on 05/27/2012

How does anyone take you seriously?

[BillChatlain]

01:10 AM on 05/28/2012

GrEaT QuEsTiOn !!! Yeaaaa Haaaa !!!

[Genders]

11:42 PM on 05/30/2012

gee, good serf, your corporate master love you and will take care of you...LOL!

btw wars for oil are most of our debt.

how's that figure in your fossil love?

[BuffNutts]

03:46 PM on 05/27/2012

Oil subsidies, freebies, tax breaks and lobbyists out the yeng-yang.... well, this only makes sense to the Mad Hatter, but in my limited brain, this is crazy talk.

[every man12345]

02:42 PM on 05/27/2012

Not that matters to the choir that Bernie is preaching to, but here are the taxes and effective tax rates that the oil companies pay.

http://www.forbes.com/sites/christopherhelman/2012/04/16/which-megacorps-pay-megataxes/

As to manufacturing, how many of the products that you use daily are derived from petroleum? Who do you think

[Genders]

11:47 PM on 05/30/2012

Forbes lies to protect the plutocracy. duh.
But you believe your masters....

http://thinkprogress.org/climate/2012/03/26/452213/exxon-mobils-tax-rate-drops-to-13-percent-after-making-35-percent-more-profits-in-2011/?mobile=nc

Learn how they lie:

http://www.washingtonpost.com/business/economy/how-much-do-oil-companies-really-pay-in-taxes/2011/05/11/AF7UNutG_story.html

[every man12345]

08:40 PM on 05/31/2012

What, people spin the numbers that best make their case, shocking ? You probably missed a key point from the think progress article, by the same calculation method the tax rate paid by the oil companies was significantly higher then paid by other industries. So the real issue is the mess of a tax code, rules and regulations created by our elected officials. My guess is, you think it can be fixed by more tax laws, rules and regulations.

"By that measure, Exxon Mobil paid 13 percent of its U.S. income in taxes after deductions and benefits in 2011, according to a Reuters calculation of securities filings.
Still, the three-year average for telecom companies is 8 percent; for information technology services companies, it is 2.5 percent, according to CTJ."

[Sherrie Heckendorn]

02:07 AM on 05/31/2012

Let me see, you are in favor of the taxpayer giving big oil welfare? Because that is all you can call it is a wellfare grant. Why? We need to stop this reliance on fossil fuels. They are destroying our earth and are not going to be around forever. I am sorry, but i feel no pity for them, they should pay taxes, and even after the huge taxes they still posted very high profits and paid their ceo's as much as 9 million dollars, but you think we should give them money, why?

[every man12345]

08:19 PM on 05/31/2012

What is giving? It appears that you believe all money belongs to the government and if they let us keep some of it that is a subsidy. I agree that it would be good for us to find a viable alternative to fossil fuel. What are you doing to that end?. What are you doing to curb your energy consumption, using computers and the Internet is not a good sign.

Like it or not hydrocarbons will provide the bulk of our energy for decades to come. We can have a coherenent energy policy that utilizes our resources, employees our people (oil companies employ large numbers of union, blue collar workers with good wages and benefits), use the tax revenue to develop renewables and conservation technology. Or be satisfied, as most on this board with no understanding of the complexity of the energy challenge, that they are piously against hydrocarbons and hate oil companies. Righteous in their indignations but having done squat to material impact energy consumption or delivery while enjoying the fruits of a high energy consuming life style.

[FearlessLeader]

12:58 PM on 05/27/2012

I wish we had 60 Bernie Sanders in the Senate.

[FearlessLeader]

12:56 PM on 05/27/2012

The Republicans oppose eliminating subsidies for oil, gas and coal, big agriculture, because they claim that would be a tax increase. But this is an accounting fraud, where you make spending a tax cut by routing that spending through the tax system. And they say they oppose all tax increases. Now, the American Opportunity (college tuition funding) Tax Credit, and Child Care tax credit and Earned Income Tax credit, are also routed through the tax system. So, logically, you would expect that the Republicans would oppose eliminating those. I take it that is not the case. I understand that the Ryan/Romney budget plans to eliminate those. So, tax increases are OK, as long as they are tax increases on the middle class. But, horrors, no tax increases on Corporations or Billionaires.

[Dredd]

12:41 PM on 05/27/2012

Well said Senator Sanders.

http://blogdredd.blogspot.com/2012/05/new-climate-catastrophe-policy-triage-6.html

[NotaBene4Veritas]

11:27 AM on 05/27/2012

Thank you Senator Sanders! All great ideas. Too bad there aren't any reasonable Republicans left to help with such an initiative. Plus, I'm sure

How about a restriction on federal government purchases? Does GSA have regulations regarding purchases? If so, can't they impose regulations prohibiting or restricting purchases from companies that are not voluntarily reducing emissions of carbon?

[Sherrie Heckendorn]

02:08 AM on 05/31/2012

F&F That was a really good point

[diana68]

10:47 AM on 05/27/2012

We can talk all we want about this but the fact is NOTHING will be done. Nothing has ever been done and nothing will get better in the future. We are going in a downward spiral at full speed and our representatives cannot (because they are too few) or will not (because there is still way too much money and power at stake) change the course we're on.

[civilbehavior]

08:45 PM on 05/27/2012

Yes, all the histrionics even from Sanders is just hot air. He might be able to tell his grandchildren that he spent his time in Congress moving a lot of chess pieces but he has yet to make a dent in anything.

This pontificating about how they need to do this and that is rubbish. Even the best of them don't have a clue how to make it work for the people. Subsidies for oil and gas?? Like Sanders is going to be able to fight them??

[cigi]

09:49 PM on 05/27/2012

At least he speaks of it...that's more than I will give the whole Damned Congress credit for at this point. You have a few Dems, but darn few who understand the deal that we made with the devil here..sell out America so a few elites can line their pockets. Kiss your democracy good-bye...it is gone and Kruscheve was right...no one had to fire a shot to take it from any of us. When you spend all of your time playing the games that the Right/Left has foisted on all of us instead of uniting to create a cohesive voice in a direction to save America and the middleclass, this is what you get. I get tired of the ignorance displayed by so many who spend way too much time playing Red State/Blue State politics. Divide and conquer...works! Our descendants will be so proud when we all look back and realize what a bunch of boobs we all are!!

[Sherrie Heckendorn]

02:09 AM on 05/31/2012

You can choose just to whine and grumble or you can take measures to help enact change. Did you follow the link and sign?

[Stoplyingtous]

08:39 AM on 05/27/2012

Senator Sanders , you make too much sense.

[Stephen the Grate]

02:13 AM on 05/27/2012

You can tell that the right wing brainwash machine works as well as ever when you see people arguing in favor of these subsidies! Do they not realize that when oil companies get subsidized, that is money that comes out of the treasury and the rest of us taxpayers have to make up for it?

[every man12345]

02:51 PM on 05/27/2012

It depends how you look at it. You appear to be of the opinion that all money belongs to the government and if it lets you keep some of it, it is a subsidy. If you make $10 and the government takes 5 then gives 1 back you see a subsidy, I say it should never went to the government in the first place.

[BillChatlain]

04:49 PM on 05/27/2012

If anyone was making up for the waisted money the federal government spends we wouldn't have nearly 16 trillion dollars in debt.

[golfvue3]

08:54 PM on 05/22/2012

Maybe I'd have more respect for Sanders if he'd start with cutting his own favorite subsidies....

http://www.foxbusiness.com/on-air/stossel/blog/2010/12/15/have-uncle-sam-buy-you-alpacas-9pm-friday-on-fox-news

[mamacat]

06:26 AM on 05/24/2012

Making farmers eligible for the same 15% capital gains tax rate from re-invested income that Romney got for sending American jobs overseas is bad for the country? Only Fox News would think so.

[angie1234]

09:46 AM on 05/25/2012

It's interesting- it costs a lot of money to buy a Peruvian wool sweater (in the hundreds of dollars) made of alpaca wool and yet according to your article there is a boatload of alpacas here in the USA, how come we don't manufacture clothing out of the wool? Stossel is wrong- there could be a market for the wool and for sweaters and pashminas and the like and we could make them here in the USA and create USA jobs and sell them here instead of importing.

[cschoenen]

09:52 AM on 05/27/2012

Because it would still cost hundreds of dollars....sad truth is that in Peru the common worker makes 9 dollars a day for wages. In the U.S., a good seamstress makes 20.00 an hour on average. Top that off with the govt. taking its bite in the equation, transportation of goods, advertising etc. it ends up costing just as much or more than importing it...
That's is why companies like North Face, Patagonia, Lululemon piss me off when their advertising is about saving the planet or being "green" yet we should start calling them on the abuse of using sweatshops around the world to make the clothing they sell us.