For years, Big Oil -- Exxon-Mobil, Chevron, BP, Texaco, and ConocoPhillips -- has raked in record profits. But their dividend to consumers is usually the same: higher gas prices that make it more difficult to get to work, shop for groceries or drop the kids off at school.
Americans may be used to getting gouged at the pump -- but we don't deserve to get gouged in Congress too. Yet that's exactly what happens when those big oil companies collect billions in tax breaks on our dime.
Over the next ten years, Big Oil will swindle American taxpayers to the tune of nearly $43 billion in unnecessary tax subsidies -- claiming the breaks are needed to increase domestic oil production. Despite these outrageous tax loopholes, domestic oil production has decreased steadily since 1970. Meanwhile, our continued dependence on foreign oil puts the country at a national security risk.
I'm pleased to hear the recent drumbeat in Washington to eliminate oil subsidies, and I support these efforts. But closing these tax loopholes alone won't end America's need for affordable energy any time soon. That's why I've put forward a commonsense plan to not only end the shameless handouts to Big Oil CEOs and Wall Street speculators, but also to address America's ever-growing need for energy -- all while creating good-paying jobs in my homestate of Iowa and across the country.
The Clean Energy Jobs Act, which I introduced earlier this week, will end the unnecessary giveaways to Big Oil and provide incentives for renewable fuel producers to expand business and develop new technologies. Just as important, it will reduce our national deficit by billions.
In Iowa alone, the renewable fuels industry supports almost 50,000 jobs and accounts for nearly $588 million of state revenue. A recent study found that clean energy investment creates two to four times as many jobs as investing that same money in oil. And while the House Republicans' irresponsible spending measure will kill over 700,000 jobs across the country, my legislation will ensure that the renewable energy industry can continue to thrive in Iowa and across the country -- actually creating jobs and growing our local economies during this fragile recovery.
As political protests continue to create unrest in many oil-producing nations, and faced with uncertain prices at the pump, we must work to ensure our energy is produced here at home. Time and again, big oil companies and OPEC nations arbitrarily raise the price of oil when they see opportunity. And the current political climate in the Middle East is giving them plenty of opportunity. That's why my bill will take the taxpayer's hand out of any of the profiteering, ensuring Wall Street speculators aren't trading our national security interests for six-figure bonuses.
House Republicans have been pushing devastating, job killing cuts in the name of "fiscal responsibility" -- but here's a chance to reduce our deficit by billions and create jobs at the same time. It's time to end big breaks for Big Oil -- and start creating energy, and jobs, here at home.
Crossposted from Bleeding Heartland.
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"Removing coal tax preferences would reduce greenhouse gas emissions and generate $2.6 billion of additional revenue over the next 10 years, an amount that represents only about one percent of annual domestic coal revenues over the coming decade."
"Repealing oil and gas research and development subsidies would reduce greenhouse gas emissions and generate $43.6 billion of additional revenue over the next 10 years, an amount that represents only about one percent of domestic oil and gas revenues over the coming decade."
Pretty straightforward.
- You rail about $43 billion in subsidies, but avoid any mention of the hundreds of billions they will pay in taxes. Your article is misleading about the net results which is a significant influx of oil revenues into the govt coffers.
- You chastise big oil for the tax loop holes, but avoid the reality that it is congress who created the loopholes. Did you submit any proposed bills to reduce/eliminate these loopholes when the Dems had total control over lawmaking?
- You admonish the oil industry for increases in the price of gasoline, yet it is the commodities market that drives the price of oil, not the oil companies.
- Oil production has decreased since 1970 because of govt restrictions on drilling permits, not because of oil companies decisions.
- The renewable fuels industry may have provided $588 million in revenues for Iowa, but at a cost of $billions in federal subsidies.
http://www.progress.org/2003/energy22.htm
try 150 to 350 B$ per year, more than the profits the oil companies made.
Got that?
We paid the oil companies profits.
Isn't drilling for oil part of the responsibility of these companies? Not only do we give them oil through underpriced leasing, but we subsidize their exploration too? Exactlly what part of doing business is do they pay for? Printing the the bonus checks for their execs and the notices of obscene profits to their stockholders?
I'm beginning to think that the root of our problem is the entire investment process. Perhaps we should completely do away with the concept and execution of stocks. Then we won't have any mortgage backed derivatives, selling short or hedge funds. That might not be such a bad thing.
http://www.youtube.com/watch?v=MGZEMwMx2vk
You make the repetitive claim of $43b in tax loopholes -
Can you name a single tax loophole.
Can you compare and contrast that tax loophole with other industries
www.law.cornell.edu/uscode/26
I have added a link to US Title 26 to assist you
While I respect your office and appreciate you serving our country, I am shocked at your apparent lack of understanding of how things work. "Higher gas prices" and 'gouging at the pump' blamed on "Big Oil"? Really, even most of the very sympathetic HuffPo audience who similarly hates Big Oil understands how it really works.
"Record profits"? I assume you understand basic economic and financial concepts of rate of return, net income, size of the entity, etc.?
"Oil subsidies"? You do realize that these 'tax breaks' are open to other industries and are not put in place just for oil companies. Those 'Big Oil' companies pay more tax, and a larger percentage of tax than any other industry in the United States. Sure, maybe they should pay even more, buy please tell us how much exactly. How much is enough so you can finally rest easy in your attacks on them?
And then the truth...ethanol. Bad for the economy, bad for the environment, bad for my car, bad for the taxpayer.
Can't we all get along and find a way both sides and both parties can equally steal from the public tills, both current accounts and childrens' future?