Obama: Tax payer subsidies to Oil and Gas should end

[MathiasOfAthens]

Abc News

Noting that oil companies announced a 30 percent increase in profits this year while Americans are struggling with $4-per-gallon gas prices, President Obama called on Congress, yet again, in his weekly address to end taxpayer subsidies for oil companies.

“While rising gas prices mean real pain for our families at the pump, they also mean bigger profits for oil companies,” Obama said. “This week, the largest oil companies announced that they’d made more than $25 billion in the first few months of 2011 – up about 30 percent from last year.”

The president said he does not have a problem with any company being rewarded for their successes, “but I do have a problem with the unwarranted taxpayer subsidies we’ve been handing out to oil and gas companies – to the tune of $4 billion a year.”

The president said it is just not right or smart.

“When oil companies are making huge profits and you’re struggling at the pump, and we’re scouring the federal budget for spending we can afford to do without, these tax giveaways aren’t right," he said. "They aren’t smart. And we need to end them.”

The Republicans’ weekly address also focused on gas prices.

“Americans are looking for leadership to tackle the rising gas prices, but President Obama has only offered a tax increase on energy and the prospect of reduced supply,” said Rep. James Lankford, R-Okla. "For more than two years, his administration has knowingly increased energy prices by choking off new sources of traditional American energy and smothering our economy in new energy regulations. His latest proposal – hiking taxes by billions of dollars – will not lower gas prices and would actually make the problem worse.“

-Sunlen Miller

Video of Obama speaking... very short and easy to listen to so you wont fall asleep.

Spoiler Alert, click show to read: 

UPI

Spoiler Alert, click show to read: 

Obama calls for end to oil, gas subsidies

WASHINGTON, April 30 (UPI) -- U.S. President Barack Obama said Saturday taxpayer subsidies for oil and gas companies should end.

In his weekly address, Obama called on Congress to stop handing oil and gas companies $4 billion every year in taxpayer subsidies, decrying the increasing pain at the pump faced by everyday Americans.

"After the worst recession since the Great Depression, our economy is growing again," Obama said. "But I also know that a lot of folks aren't feeling as positive as some of those statistics might suggest. It's still too hard to find a job. And even if you have a job, chances are you're having a tougher time paying the rising costs of everything from groceries to gas. …

"Of course, while rising gas prices mean real pain for our families at the pump, they also mean bigger profits for oil companies. This week, the largest oil companies announced that they'd made more than $25 billion in the first few months of 2011 -- up about 30 percent from last year.

"Now, I don't have a problem with any company or industry being rewarded for their success. … But I do have a problem with the unwarranted taxpayer subsidies we've been handing out to oil and gas companies -- to the tune of $4 billion a year. … These tax giveaways aren't right. They aren't smart. And we need to end them," the president said.

AAA said Friday the average price for gas was $3.909 a gallon, compared with $3.886 Thursday and $2.877 last year. Gasoline reached its highest average price July 17, 2008, when it sold for an average $4.114.

I think this is about time... I agree with Obama we shouldnt be subsidizing this companies anymore even while the cost at the pump keeps going up for consumers? Why are we subsidizing oil and gas companies when they just jack up their prices at the pump and then claim tax benefits?

I know gas prices usually increase before summer but if tax payer money is going to go to subsidizing the particular industries then we should at least invest in renewable resources as well... besides isnt this hypocritical for Conservatives? Its wrong to intervene into the economy and pay for rail roads and other infrastructure projects (excluding highway expansions [nothing wrong with expanding roads]) but its ok to subsidize a group of companies making oil and gas...?

Democrats to introduce bill, continue push to end subsidies for oil companies

Senate Democrats are crafting legislation that would end federal taxpayer subsidies for Big Oil companies and redirect that money to develop cleaner and cheaper sources of fuel.

Senate Finance Committee Chairman Max Baucus (D-Mont.) said on Thursday his committee was working on legislation that would repeal tax breaks for the five largest oil and gas companies, which reported large increases in first-quarter profits this week because of increasing oil prices – Exxon Mobil Corp., for example, on Thursday reported a $10.7 billion profit for the first three months of the year, which is a 69 percent increase over the same period in 2010.

“Now is not the time to stand idly by while large oil and gas companies get billions of dollars in tax breaks – now is the time to take concrete steps toward cleaner, more affordable, domestically-produced energy,” Baucus said in a statement. “Reducing dependence on foreign oil isn’t easy, but this plan puts us on a path toward a clean, affordable energy future that works for our planet – and our pocketbooks.”

Examiner article: Continues from the quote above.

Spoiler Alert, click show to read: 

As gas prices have been increasing and posing a risk to the fragile economic recovery, both President Barack Obama and Democrats have been renewing their push for an end to the taxpayer subsidies for Big Oil companies. They got a surprising opening in their calls for eliminating the tax breaks after House Speaker John Boehner (R-Ohio) said in an interview with ABC News on Monday that he would consider ending the subsidies. In the days following his interview, though, a Boehner spokesman tried to backtrack on the comments saying the speaker did not want to end the subsidies because it would mean increasing taxes while doing nothing to reduce gas prices.

“The Speaker wants to increase the supply of American energy to lower gas prices and create millions of American jobs,” spokesman Michael Steel said in an email. “Raising taxes will not do that.”

However, Democrats have used Boehner’s words to go on the offensive this week, and 28 House Democrats have urged Boehner to have an up-or-down vote on legislation that would end roughly $8 billion in oil subsidies annually – more than the $4 billion in annual tax breaks President Obama has called for eliminating.


“With gas prices on the rise, we would welcome the opportunity to show our constituents that Congress is ready to stop wastefully subsidizing some of the most profitable businesses in the world and instead use that money to reduce the deficit and invest in real relief from high gas prices,” the Democrats wrote in the letter to Boehner.

Although the legislation is not likely to go anywhere in the House – similar measures have previously failed to pass the House even when Democrats controlled the lower chamber – both House Minority Leader Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.) said they supported ending the subsidies. Reid said on Wednesday legislation would be brought to the Senate floor as soon as possible, and Pelosi urged the House Republican leadership to do the same.

“There is no reason American taxpayers should subsidize Big Oil’s profits,” Pelosi said in a statement. “This week, Speaker Boehner said that oil companies should pay their fair share; it’s now time for him to make good on that statement and schedule a vote next week on ending taxpayer subsidies to Big Oil.”

The Senate bill could be introduced on the floor of the upper chamber as soon as next week when Congress returns to session. Democrats in the House of Representatives already have introduced a bill that would eliminate $40 billion in tax breaks for big oil and gas companies over five years.

[Menelik_I]

Spoiler Alert, click show to read: 

Abc News



Video of Obama speaking... very short and easy to listen to so you wont fall asleep.

Spoiler Alert, click show to read: 

UPI


I think this is about time... I agree with Obama we shouldnt be subsidizing this companies anymore even while the cost at the pump keeps going up for consumers? Why are we subsidizing oil and gas companies when they just jack up their prices at the pump and then claim tax benefits?

I know gas prices usually increase before summer but if tax payer money is going to go to subsidizing the particular industries then we should at least invest in renewable resources as well... besides isnt this hypocritical for Conservatives? Its wrong to intervene into the economy and pay for rail roads and other infrastructure projects (excluding highway expansions [nothing wrong with expanding roads]) but its ok to subsidize a group of companies making oil and gas...?

Democrats to introduce bill, continue push to end subsidies for oil companies



Examiner article: Continues from the quote above.

Unless He end the moratorium on drilling, including ANWAR and cut GE hand outs also ... this is a stupid thing to do.

Plus how Uber smart Obama have been lately only coming with lame populist stunts ... it is so The Donald.

[Gaidin]

Unless He end the moratorium on drilling, including ANWAR and cut GE hand outs also ... this is a stupid thing to do.

You're seriously saying that 30% PROFIT INCREASE, and that isn't to say they didn't have huge profits before, is not enough to say "you don't need subsidies, you're doing damn well for yourself"?

...

What? That makes no sense. At all.

[k995]

Unless He end the moratorium on drilling, including ANWAR and cut GE hand outs also ... this is a stupid thing to do.

Why? Why do you need to subsidize profitable companies?

[Menelik_I]

Why? Why do you need to subsidize profitable companies?

I don't want to subsidize oil companies, I'm just challenging the dumb premise that they are getting massive subsidies and the even more idiotic populism of punishing them will at the same time not addressing oil prices.

@Mathias:

You didn't watched the video to the end ?

He said his idea is TEMPORARY, the long term proposal would be an increase in US production according to Mitch McConnel plan.

But you are right, Gas taxes are to finance and maintain roads, being like an user fee kind of system.

[k995]

I don't want to subsidize oil companies, I'm just challenging the dumb premise that they are getting massive subsidies and the even more idiotic populism of punishing them will at the same time not addressing oil prices.

But they are getting massive subsidies. Its what 15 to 30 billion a year ?

They would still have large profits without these subsidies, of course they would just hike up the price but that is their choice.

[motiv-8]

Unless He end the moratorium on drilling, including ANWAR and cut GE hand outs also ... this is a stupid thing to do.

Er, not it's not. Those things you listed have literally nothing to do with this. If we wanted another red herring we could go to the beach.

I like this. Also, end corn subsidies.

[Menelik_I]

Er, not it's not. Those things you listed have literally nothing to do with this. If we wanted another red herring we could go to the beach.

I like this. Also, end corn subsidies.

According to government law #45454 : The money taxed for the subsidy will likely be returned to the tax payers and will be spend in somewhat equally idiotic.

So if you are going to bust the subsidy, at least make structural changes to allow production to increase and prices to fall.

You're seriously saying that 30% PROFIT INCREASE, and that isn't to say they didn't have huge profits before, is not enough to say "you don't need subsidies, you're doing damn well for yourself"?

...

What? That makes no sense. At all.

It is a populist stunt using high gases prices outrages, will doing nothing to address the high prices themselves.

The likely result of merely cutting it will be higher prices.

ETA:

I doubt cutting oil subsidies is popular amongst Republicans/conservatives who are not Ron Paulites. Most of them think we should invest in oil companies because if we dont the world will collapse and the apocalypse will come. True Story look it up.

That is unfortunate ... maybe putting GE on the wall with Exxon might help lol

[Gaidin]

It is a populist stunt using high gases prices outrages, will doing nothing to address the high prices themselves.

The likely result of merely cutting it will be higher prices.

It isn't designed to. Addressing the high prices is a totally different aspect than removing subsidies they don't need. These things don't have magic bullet solutions. They never have, and they never will.

[MathiasOfAthens]

I doubt cutting oil subsidies is popular amongst Republicans/conservatives who are not Ron Paulites. Most of them think we should invest in oil companies because if we dont the world will collapse and the apocalypse will come. True Story look it up.

Huffington

Senate Finance Committee Chairman Max Baucus (D-Mont.) announced on Thursday that his committee is crafting a measure that would repeal major tax breaks for the five largest oil and gas companies, which reported huge spikes in first-quarter profits this week due to skyrocketing oil prices.

Wow... we are subsidizing companies that are profiting off of skyrocketing prices. I mean its one thing when Republicans say we shouldnt subsidize Amtrak because some of its lines DONT make a profit but when a company actually does make a HUGE ing profit its ok to keep throwing money at them hoping they will reducing costs at the pump for consumers.

Exxon Mobil Corp., for example, on Thursday reported a $10.7 billion profit for the first three months of the year, which is a 69 percent increase over the same period in 2010.

[motiv-8]

Sounds better than the alternative Mathias, which is to invest in alternative energy, which will bring about the fall of our country and the rise of the United Socialist States of America.

According to government law #45454 : The money taxed for the subsidy will likely be returned to the tax payers and will be spend in somewhat equally idiotic.

Oh ok, we should all totally take seriously your 'argument' based on a made up rule.

It is a populist stunt using high gases prices outrages, will doing nothing to address the high prices themselves.

The likely result of merely cutting it will be higher prices.

Um, oil is a finite product that is inexorably reaching the end of sustainability as a resource. Any move to lower prices, like making us pay for subsides for oil companies rather than technologies that make sense for the future, is even MORE populist and will do nothing in the long term to address high prices, while incidentally also completely screwing over our entire state and society.

Solid move, bro.

[MathiasOfAthens]

Sounds better than the alternative Mathias, which is to invest in alternative energy, which will bring about the fall of our country and the rise of the United Socialist States of America.

Oh ok, we should all totally take seriously your 'argument' based on a made up rule.

lol yeah good point. United Capitalistic Corporatist States of America is better.

[Menelik_I]

Oh ok, we should all totally take seriously your 'argument' based on a made up rule.

When was the last time Spending was cut and money returned to tax payers ?

It isn't designed to. Addressing the high prices is a totally different aspect than removing subsidies they don't need. These things don't have magic bullet solutions. They never have, and they never will.

Then cut the subsidies and have a populist orgasm feeling good about it.

[Gaidin]

Then cut the subsidies and have a populist orgasm feeling good about it.

Yea because your idea of having an orgasm while throwing money at the gas companies like they're strippers and the US is a strip club is doing a lot for us.

[Menelik_I]

Yea because your idea of having an orgasm while throwing money at the gas companies like they're strippers and the US is a strip club is doing a lot for us.

Obama is pushing this thing under the slogan that ''Oil companies are making extraordinary profits has price sky-rocketed'' and from there He propose to cut the subsidies.

No subsidies is what is needed, but Obama is merely pushing populist crap and will do nothing to solve the high gas prices.

@MathiasOfAthens:

What proportion of this ''obscene'' profit increase is actually coming from Gasoline and Diesel sales
AFAIK Oil companies have a wider ranger of refined products on sale, could you please clarify with a break down of profits ... because the ''TrumPopulism'' from this Obama stunt is stinky.

[Gaidin]

Obama is pushing this thing under the slogan that ''Oil companies are making extraordinary profits has price sky-rocketed'' and from there He propose to cut the subsidies.

No subsidies is what is needed, but Obama is merely pushing populist crap and will do nothing to solve the high gas prices.

Man you don't know crap about how this stuff works, especially around election time. Of course he's going to push something that's needed, not to mention popular, in a populist way. It's 2011, and people are starting to declare for running for the presidential race. His method of pushing it doesn't change the fact that its needed. You're mincing words in the most inane way. Save your energy for when he tries to end a policy that is actually needed.

[JP226]

Song and dance for the plebs. Gotta help those polling numbers.

[MathiasOfAthens]

They got a surprising opening in their calls for eliminating the tax breaks after House Speaker John Boehner (R-Ohio) said in an interview with ABC News on Monday that he would consider ending the subsidies. In the days following his interview, though, a Boehner spokesman tried to backtrack on the comments saying the speaker did not want to end the subsidies because it would mean increasing taxes while doing nothing to reduce gas prices.

Hahaha Boehner is hilarious. One moment he supports the idea of cutting subsidies and the next day after a call from Exxon he changed his mind and claimed everyone would have to pay more in taxes if we stopped throwing money into the Oil and Gas hole to nowhere. He even went so far to as to say if we do stop throwing money into the hole to nowhere it wont make gas prices go down so its better we keep throwing away money then spend it on something else?

[MathiasOfAthens]

Its better than not giving them money... at least when we give them money and gas prices still go up and the companies make record profits at least we can say its better than not throwing money at their laps. lmao.


Money doesnt have to go back to the people through tax returns they can return in the form of infrastructure improvements that raise the real estate values of properties and bring in revenue to local governments and actual Small business owners. No, investing in corporate leaders mansions is better than our own ing neighborhoods.

[JP226]

Seriously, they aren't going to cut the subsidies, this is an easy out for Obama b/c he can say one thing and when it doesn't happen, "blame congress." Not that they don't deserve the blame but Obama's ability to effect any of this is about as powerful as mine. Hell, given my job I might even be a little more powerful than him.