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Ryan calls for ending oil subsidies
Politico ^ | 04/28/2011 | Robin Bravender

Posted on 04/28/2011 3:35:00 PM PDT by Hawk720

House Budget Committee Chairman Paul Ryan called for ending oil subsidies Thursday, further complicating Republican efforts to stay on message about rising gas prices.

The Wisconsin Republican told constituents at a Waterford, Wis., town hall meeting that he agreed that federal oil subsidies ought to end.

“We’re talking about reforming the safety net, the welfare system; we also want to get rid of corporate welfare. And corporate welfare goes to agribusiness companies, energy companies, financial services companies, so we propose to repeal all that,” Ryan said in response to a question about oil subsidies.

A video of Ryan's town hall meeting was circulated by Think Progress, a blog run by the liberal-leaning Center for American Progress Action Fund.

In a statement to POLITICO, Ryan’s office said the House-passed budget resolution “clearly states that as part of an overall corporate tax reform, tax loopholes and deductions for all corporations should be scaled back or eliminated entirely. That obviously includes oil companies. Elsewhere, we state that subsidies for all energy companies need to be reduced or eliminated so that we can get government out of the business of picking winners and losers in the market.”

(Excerpt) Read more at politico.com ...


TOPICS: News/Current Events; US: Wisconsin
KEYWORDS: paulryan; thinkprogress; wisconsin
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1 posted on 04/28/2011 3:35:06 PM PDT by Hawk720
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To: Hawk720

How about ending corn subsidies.


2 posted on 04/28/2011 3:35:46 PM PDT by Sacajaweau
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To: Sacajaweau

Ryan turns RINO.......ugh


3 posted on 04/28/2011 3:37:27 PM PDT by Goreknowshowtocheat
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To: Sacajaweau

Which subsidies are those?


4 posted on 04/28/2011 3:38:23 PM PDT by Mr. Lucky
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To: Hawk720

How about ending big tax hikes against oil.


5 posted on 04/28/2011 3:38:27 PM PDT by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
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To: Sacajaweau

i would like a popcorn subsidy. cost more than the movie now.


6 posted on 04/28/2011 3:38:33 PM PDT by beebuster2000
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To: Hawk720
STUPID, DUMB-@SS REPUBLICANS
7 posted on 04/28/2011 3:38:38 PM PDT by Extremely Extreme Extremist (Governor Sarah Heath Palin for President of the United States in 2012)
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To: Hawk720
Elsewhere, we state that subsidies for all energy companies need to be reduced or eliminated so that we can get government out of the business of picking winners and losers in the market.”

Sounds like he's tying it to failure subsidies. Gonna be a tough one for the democrats to deal with.
8 posted on 04/28/2011 3:39:47 PM PDT by cripplecreek (Remember the River Raisin! (look it up))
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To: Goreknowshowtocheat

Ryan seems like a bright guy. Why is he conflating tax breaks to private businesses with reforming public entitlement money pits that generate no tax revenue and create no jobs? Ryan realizes that any additional costs to a private business gets passed on to the end user, right?

VERY disappointing statement by Paul Ryan. I hope he can explain his thinking on this issue, because to me, it will only increase food and energy costs.


9 posted on 04/28/2011 3:40:29 PM PDT by Carling (Obama: Inexperienced and incompetent, yet ego maniacal. God help us all.)
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To: Hawk720

How about GE and GM and ADM? and other ‘connected’ companies?


10 posted on 04/28/2011 3:40:39 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: Hawk720
What a terrible time to be calling for ending oil subsidies, politically.

It's a message to the American people that the oil companies and NOT Obama and his policies that are responsible for the high gas prices.

The republicans are taking this issue off the table for us to use and before these republicans are done with their crying in public the only thing we will have left to run is the Obama birth certificate.

11 posted on 04/28/2011 3:41:26 PM PDT by tsowellfan (Trust But Verify makes President Reagan the original birther.)
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To: cripplecreek

It sounds like they want the Arabs to win. Domestic production will take another hit.


12 posted on 04/28/2011 3:41:37 PM PDT by Goreknowshowtocheat
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To: Hawk720

/facepalm.

I give up.

To Hell with the GOP.


13 posted on 04/28/2011 3:42:29 PM PDT by chris37 (awesome!)
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To: Hawk720

End all subsidies.

No other option.


14 posted on 04/28/2011 3:42:38 PM PDT by paulycy (Islamo-Marxism is Evil.)
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To: Mr. Lucky

“Which subsidies are those?”

Good question. Maybe he is talking about tax increases.


15 posted on 04/28/2011 3:42:46 PM PDT by forgotten man (forgotten man)
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To: GeronL

ALL of them. I am disgusted that we are paying them ion the first place.

AND those few billion take away a big gun from the dumbles. You simply cannot justify paying corporations subsidies.


16 posted on 04/28/2011 3:43:30 PM PDT by Adder (Part 1 Accomplished)
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To: Hawk720

Oil subsidies only represnt $4 billion per year. Meanwhile the price increase from ~$70 per barrel to $110 per barrel over the 8 million barrels produced daily by domestic oil companies represents ~$117 billion dollars per year. The oil companies don’t need the subsidies.

I only hope that the GOP is smart enough to get something (from the president) in return for giving up the oil subsidies...like opening up more federal lands and offshore territory to drilling.


17 posted on 04/28/2011 3:44:54 PM PDT by NRG1973
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To: Goreknowshowtocheat

The democrats aren’t going to cut subsidies to big wind.


18 posted on 04/28/2011 3:46:34 PM PDT by cripplecreek (Remember the River Raisin! (look it up))
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To: Sacajaweau
How about ending corn subsidies.

What's Chuck Grassley ("Ethanol is the only reliable, legitimate alternative to crude oil") got on Paul Ryan?

19 posted on 04/28/2011 3:46:48 PM PDT by re_nortex (DP...that's what I like about Texas.)
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To: Hawk720

I totally agree with him and he needs to nail Obama to the wall with the hypocrisy of the Liberals....
of course we will end subsidies for Oil companies as well as Corn, Wind, Solar, and other useless, (so called green renewable) non-evolving technologies that have been struggling for years and will never ever evolve to meet America’s current or future energy needs but we must also say that isn’t it time Mr. President to stop playing the political games with the Oil industry and stand up for the people that are being hardest hit with these high energy prices, isnt it time to drill here and drill now to help the struggling middle class cope with the rising gas prices?

I bet the Oil companies wouldn’t care a bit about subsidies if the government would remove the boot from their neck and allow them to drill the massive amounts of energy we have here in America.


20 posted on 04/28/2011 3:49:25 PM PDT by Typical_Whitey ("It doesn't matter how smart you are, unless you stop and think".... Thomas Sowell)
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To: paulycy
End all subsidies.

I agree, but the oil "subsidies" aren't. They're tax breaks given in return for the oil companies taking huge risks in exploration and development.

What's funny is that if we end these "subsidies," Fed.gov wouldn't even get the money. The oil companies would likely stop engaging in the activities that are being "subsidized."

As a bonus course oil would also be more scarce, compounding our energy problems.

21 posted on 04/28/2011 3:50:01 PM PDT by AAABEST (Et lux in tenebris lucet: et tenebrae eam non comprehenderunt)
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To: NRG1973
I only hope that the GOP is smart enough to get something (from the president) in return for giving up the oil subsidies...like opening up more federal lands and offshore territory to drilling.

That's what I'm thinking. Cut the "subsidies" to oil companies but only if we cut them to other energy producers and tie it to opening more land to oil and gas production.

We're gonna need to take the senate in the next election to really right the ship.
22 posted on 04/28/2011 3:50:08 PM PDT by cripplecreek (Remember the River Raisin! (look it up))
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To: Hawk720

I am not especialy fond/unfond of Ryan, but the Heritage Foundation has made similar proposals: http://blog.heritage.org/?p=50173


23 posted on 04/28/2011 3:50:08 PM PDT by MSF BU (YR'S Please Support our troops: JOIN THEM!)
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To: Hawk720

Good first step, as long as we also hit corn/ethanol, farm, sugar, “green,” etc.


24 posted on 04/28/2011 3:50:17 PM PDT by antiRepublicrat
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To: Adder

I am against all forms of subsidies and favoritism.


25 posted on 04/28/2011 3:51:01 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: Hawk720
Corporate federal tax paid by ExxonMobil- 10 billion

Corporate Tax paid by GE- 0

End result will be that Oil companies will find it less desireable to drill anywhere in this country. More hope and change from the dumbass punk president.

26 posted on 04/28/2011 3:53:37 PM PDT by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
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To: AAABEST
Good point, but probably too complicated for most folks to take the time to understand. I'm glad that I invested as heavily as I did in pipeline MLP’s and Canadian Oil Trusts. They are going to be major beneficiaries of the coming energy debacles.
27 posted on 04/28/2011 3:53:46 PM PDT by MSF BU (YR'S Please Support our troops: JOIN THEM!)
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To: AAABEST
I agree, but the oil "subsidies" aren't.

I did not know all that. Thank you for the info.

28 posted on 04/28/2011 3:53:51 PM PDT by paulycy (Islamo-Marxism is Evil.)
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To: Hawk720

Sure, end oil subsidies!

Then end holdups on drilling by the EPA, the Endangered Species Act, etc. Turn approval for all permits for new refineries over to the state where the refinery will be located.

Tax the Sierra Club, World Wildlife Fund, etc. as a “for profit” political organizations, same rates as the oil companies.

Level the playing fields!


29 posted on 04/28/2011 3:54:09 PM PDT by BwanaNdege ("Oh, what a tangled web we weave when first we practice to deceive!")
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To: Sacajaweau
You forget something ~ there's no one for one comparison. MOST of the oil pumped in the United States comes from offshore wells where the US Government owns the wells, the land, the rights ~ etc. The companies get to pump oil and sell it AFTER they pay rent and royalties.

There is no oil depletion allowance for the government of course.

If the "subsidy" is down to a tidy $4 billion out of an umpty umpt percentage of a trillion bucks ain't much left of it eh.

Large blocks of onshore oil is also pumped from lands owned by nonprofit entities, Indian tribes, Eskimo corporations and other federal lands.

Oil companies who own their own onshore oil fields don't pay rent or royalties (as I understand the way this is dealt with).

It'd be nice to know who the folks are who own their own wells. Is it possible they are all Democrats?

If so, I like that ~ a tax (inferentially) that applies to Democrats.

The "subsidy" currently being considered is little more than an accounting gimick. The companies currently get to write off their investments in drilling equipment as expenses over a 4 year period. If you simply end that "write off" they'll buy far less drilling equipment and you'll get more accidents and blow outs as old funky stuff is worked beyond it's expected lifetime. If you extend the "write off" to 5 years it'll reduce the value of future investment ~

There's much less here than meets the eye folks.

30 posted on 04/28/2011 3:55:58 PM PDT by muawiyah
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To: paulycy

Agree 100%. “Conservative” seem to be conservative only until the socialism of their choice, which is exactly why we are where we are, today.

However, that having been said, there need to be a lot more reforms to go hand in hand with the ending of all of these unconstitutional subsidies, as well.


31 posted on 04/28/2011 3:57:14 PM PDT by JDW11235 (I think I got it now!)
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To: Sacajaweau

No fooling.
I am tired of paying more to get less MPH while driving to the store to pay higher food costs.


32 posted on 04/28/2011 3:57:33 PM PDT by mylife
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To: Hawk720
Cut all subsidies across the board along with regulation!

In the scheme of things this is what is desired for a free society anyway.

Subsidies only make the receiver beholden anyway!

33 posted on 04/28/2011 3:57:37 PM PDT by EGPWS (Trust in God, question everyone else)
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To: GeronL

Yeah, but do you see corn & wind scams getting cut? No.


34 posted on 04/28/2011 3:59:52 PM PDT by Minus_The_Bear
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To: NRG1973

“I only hope that the GOP is smart enough to get something (from the president) in return for giving up the oil subsidies...like opening up more federal lands and offshore territory to drilling.”

Excellent idea, and spot on. We must end the socialism, including the government theft of state lands. Then they can be open for drilling. It’s not going to happen overnight, but it all MUST happen. That, or we’ll simply be invaded by those who WILL use the resources instead (Well, they’ll make an attempt to invade, at least).


35 posted on 04/28/2011 4:00:18 PM PDT by JDW11235 (I think I got it now!)
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To: paulycy

Works for me.


36 posted on 04/28/2011 4:00:36 PM PDT by mylife
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To: Hawk720
And corporate welfare goes to agribusiness companies, energy companies, financial services companies, so we propose to repeal all that,” Ryan said in response to a question about oil subsidies.

Good on Ryan, cut all corporate welfare including the green stuff. Of Course Obama and the other RATs will never go for cutting green subsidies.

37 posted on 04/28/2011 4:01:07 PM PDT by Mike Darancette (Is Trump a Stalking Horse for Guiliani?)
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To: AAABEST
They aren't really "tax breaks" either. They are different periods of depreciation for capital investment. You end up paying whatever taxes are due at one time or the other depending on how Congress sets the periods of depreciation.

A "write off" for hiring employees is no different than a "write off" for buying a chunk of pipe. You just get to "write off" the employee salary this year rather than next year.

Functionally the creation of a capital depreciation period greater than one year is the same as INCREASING TAX PAYMENTS in the Current Year and reducing tax payments in a Future Year.

It's SMOKE and MIRRORS.

38 posted on 04/28/2011 4:01:07 PM PDT by muawiyah
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To: paulycy
MYTH: The oil and natural gas industry receives unfair subsidies.

FACT: The industry does not receive subsidies, but is eligible for tax provisions--similar to those available to other industries--that promote domestic job creation and encourage new exploration. The industry also pays an effective tax rate of 48.4 percent, compared to 28.1 percent for all other S&P Industrials.

Those are the facts. While some see the industry's doing well as a reason to impose additional taxes, punishing success is not in America's best interest.

The Economics of Oil Company Earnings


39 posted on 04/28/2011 4:02:16 PM PDT by re_nortex (DP...that's what I like about Texas.)
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To: AAABEST
The oil companies would likely stop engaging in the activities that are being "subsidized."

Not at all. Oil companies are in business to make money and they make money by selling oil. They have oil because they look for it and then pump it out of the ground.

What they will do is increase the cost to the consumer to cover the cost of production.

The individual customer will decide if the cost is worth it.

In other words it will be more of a free market with less government manipulation.

40 posted on 04/28/2011 4:02:16 PM PDT by seowulf ("If you write a whole line of zeroes, it's still---nothing"...Kira Alexandrovna Argounova)
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To: paulycy; AAABEST

“I did not know all that. Thank you for the info.”

Ditto.


41 posted on 04/28/2011 4:02:29 PM PDT by JDW11235 (I think I got it now!)
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To: MSF BU
Yep, PEMEX, and Canadian fields futures are about to sky rocket. What the sheeple don't realize is the oil companies will just shrug this off, and do their E/P activities elswhere.

Tack on transmission charges, and lower revenues from domestic production, and you what have is probably $8-10 gallon gas without the dollar devaluation.

I can't beleive our legislators (both sides) are this stupid.

42 posted on 04/28/2011 4:03:20 PM PDT by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
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To: AAABEST
When you extend the period of depreciation ("end the subsidy" in Congress~speak) during a period of industrial materiel and capital deflation, you increase the real cost of the annual depreciation in future periods far more than you gain in terms of real income in the present period.

It's kind of a dumb thing to do. During continuing high levels of industrial depreciation you should be REDUCING the period of depreciation.

43 posted on 04/28/2011 4:03:26 PM PDT by muawiyah
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To: Hawk720

Sounds like a true conservative to me.


44 posted on 04/28/2011 4:03:39 PM PDT by DallasDeb
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To: mylife
I am tired of paying more to get less MPH while driving to the store to pay higher food costs.

Government manipulation of the masses is an expensive endeavor.

The money has to come from somewhere.

Lately it is a race between government inflationary tactics and taxes as to how the wealth is taken.

Since taxes are so unpopular government has taken the printing route to take our wealth via inflation.

They seem to always get it one way or another.

45 posted on 04/28/2011 4:04:05 PM PDT by EGPWS (Trust in God, question everyone else)
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To: Hawk720

How about ending all subsidies?


46 posted on 04/28/2011 4:04:10 PM PDT by GSWarrior (GSWarrior's tagline has layers.)
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To: Sacajaweau

Uhm, that would be agribusiness.


47 posted on 04/28/2011 4:04:23 PM PDT by DallasDeb
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To: Mr. Lucky
Which subsidies are those?

The indirect subsidy that increases the market price of corn.

That is, the law that requires gasoline contain at least 10% ethanol.

48 posted on 04/28/2011 4:04:54 PM PDT by seowulf ("If you write a whole line of zeroes, it's still---nothing"...Kira Alexandrovna Argounova)
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To: re_nortex
While some see the industry's doing well as a reason to impose additional taxes, punishing success is not in America's best interest.

Although I am far too uninformed to intelligently compare tax rates between industries and services I completely agree with the statement above.

49 posted on 04/28/2011 4:05:05 PM PDT by paulycy (Islamo-Marxism is Evil.)
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To: Typical_Whitey

“I bet the Oil companies wouldn’t care a bit about subsidies if the government would remove the boot from their neck and allow them to drill the massive amounts of energy we have here in America.”

Exactly. The subsidies are not needed, trust me.


50 posted on 04/28/2011 4:07:19 PM PDT by Peter from Rutland
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