Skip to comments.Ryan calls for ending oil subsidies
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.
Were 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, Ryans 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 ...
How about ending corn subsidies.
Ryan turns RINO.......ugh
Which subsidies are those?
How about ending big tax hikes against oil.
i would like a popcorn subsidy. cost more than the movie now.
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.
How about GE and GM and ADM? and other ‘connected’ companies?
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.
It sounds like they want the Arabs to win. Domestic production will take another hit.
I give up.
To Hell with the GOP.
End all subsidies.
No other option.
“Which subsidies are those?”
Good question. Maybe he is talking about tax increases.
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.
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.
The democrats aren’t going to cut subsidies to big wind.
What's Chuck Grassley ("Ethanol is the only reliable, legitimate alternative to crude oil") got on Paul Ryan?
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.
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.
I am not especialy fond/unfond of Ryan, but the Heritage Foundation has made similar proposals: http://blog.heritage.org/?p=50173
Good first step, as long as we also hit corn/ethanol, farm, sugar, “green,” etc.
I am against all forms of subsidies and favoritism.
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.
I did not know all that. Thank you for the info.
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!
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.
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.
I am tired of paying more to get less MPH while driving to the store to pay higher food costs.
In the scheme of things this is what is desired for a free society anyway.
Subsidies only make the receiver beholden anyway!
Yeah, but do you see corn & wind scams getting cut? No.
“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).
Works for me.
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.
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.
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.
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.
“I did not know all that. Thank you for the info.”
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.
It's kind of a dumb thing to do. During continuing high levels of industrial depreciation you should be REDUCING the period of depreciation.
Sounds like a true conservative to me.
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.
How about ending all subsidies?
Uhm, that would be agribusiness.
The indirect subsidy that increases the market price of corn.
That is, the law that requires gasoline contain at least 10% ethanol.
Although I am far too uninformed to intelligently compare tax rates between industries and services I completely agree with the statement above.
“I bet the Oil companies wouldnt 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.