Time to End Oil Subsidies and Taxes?

Joanna Schroeder

As gas prices go “up, up and away” once again oil companies are on the hot seat as they announced massive profits. And while the renewable energy industry continues to be attacked for its subsidies and incentives, no one mentions the billions of dollars of subsidies the oil companies receive each year and have been for over a hundred years. Meanwhile, consumers are pinching pennies to buy everything from groceries to gas and the fear is that the U.S. economy will slow once again.

The high gas prices and high oil company profits have President Obama saying that in light of federal budget deficits and public anger over oil profits (not a new phenomenon by the way), they will work with Congress to cut the subsidies, tax breaks and publicly-financed giveaways that global oil companies receive.

Yet this statement has the ethanol industry asking, “Is there hope for that?”

In response, Growth Energy’s CEO said, “Profits are one thing, but when these companies are also raking in billions of dollars in federal subsidies all while Americans are suffering at the pump, something’s got to give. High oil prices are driving up gas prices, grocery prices – everything. Many Americans don’t realize that they are underwriting these profits in the form of tax breaks and subsidies. Speaker Boehner has opened the door to talking to President Obama about ending these needless giveaways to global oil companies and we encourage the House to follow their lead. At a minimum, we need to have congressional hearings.

Buis concluded, “It’s time we end the handouts to big oil companies. It’s time we take what are the hidden costs and put them out in the sunlight – let’s see what it really costs the taxpayer for our addiction to foreign oil.”

You can listen to additional comments from Tom Buis here: Time to End Oil Subsidies & Taxes?

biofuels, Ethanol, Growth Energy, Oil, Opinion