Posted on 03/04/2012 1:35:57 AM PST by Libloather
Obama: Tell Congress to stop $4B 'giveaway' to oil companies
By Amie Parnes - 03/03/12 06:23 AM ET
President Obama called on Congress Saturday to stop using federal dollars to subsidize the oil industry and put an end to a so-called "taxpayer giveaway."
Saying that every year $4 billion in taxpayer money goes to subsidizing the oil industry, Obama urged lawmakers to put an end to corporate welfare.
"I don't think oil companies need more corporate welfare," Obama said in his weekly address. "Congress should end this taxpayer giveaway."
He asked Americans to "email, call or tweet" their representatives to tell them "to stop fighting for oil companies" and "to start fighting for working families."
In the address, Obama reiterated, as he has in recent days, that the country is "making progress" in taking control of its energy future. But he repeated his call for an "all-of-the-above" strategy which would develop other sources of energy — not just oil drilling.
"We can't just drill our way out of this problem," Obama said. "While we consume 20 percent of the world's oil, we only have 2 percent of the world's oil reserves."
In the GOP's address, House Natural Resources Chairman Doc Hastings charged that Obama's "administration has proposed costly regulations that would hurt the supply of other domestic sources."
Obama said a "priority" of his has been to develop new technology "that will help us use new forms of energy."
He said because of investments his administration has made clean, renewable energy has almost doubled, creating new jobs for thousands of Americans.
In his address, Obama also touted his administration's new fuel efficiency standards, which would inevitably help Americans save money when they fill up their gas tanks. The move will also reduce the nation's dependence on oil overseas.
Obama said the new standards would help ease the high cost of fuel at the pump but he added, "there's no silver bullet for avoiding gas prices every year.
"There's no shortcut to taking control of our energy future," he said.
Yes, we can.
um... so Obama found some “corporate welfare” he doesn’t like did he?
2 Minutes Hate. Today’s subjects: Oil, Coal and Electricity.
Windmills and waterwheels aren't “new.”
to stop using federal dollars to subsidize the oil industry and put an end to a so-called “taxpayer giveaway.”
Here are a few of the items which are being incorrectly identified as “subsidies” inside the beltway:
Intangible Drilling Costs – Companies which engage purely in energy exploration and discovery can recover their costs related to exploration at tax time at a rate of 100%. This lessens the burden on energy providers for the number of “dry holes” which may be found in the process. Integrated companies (i.e. “big oil”) can recover these exploration costs at 70%. Not a subsidy.
Domestic Manufacturer’s Deduction (Section 199) – A deduction (not a credit) equal to 9% of income earned from manufacturing, producing, growing or extracting in the United States, is available to every single taxpayer who qualifies in the U.S. The oil and gas industry, and only the oil and gas industry, is limited to a 6% deduction.
Percentage Depletion – The percentage depletion deduction is a cost recovery method that allows taxpayers to recover their lease investment in a mineral interest through a percentage of gross income from a well. This depletion method is not available to companies that produce oil as well as refine and market it (i.e. “Big Oil”.) This is available to all extractive industries (gold, iron, clay, etc) in the US and is in no way unique to the oil and gas industry.
There are more, so download the paper and read them for yourself. Then, when you hear your congressman talking about all of the “subsidies” for big oil, you can set them straight based on the facts.
To be clear, the federal government does engage in the handing out of a lot of actual subsidies, including those for ethanol and a variety of wasteful programs which are essentially failures on their own merit without feeding off the teat of Uncle Sam. And we should certainly be looking at those areas as way to address cost cutting. But trying to depict tax credits used by the energy industry – in the same fashion as every other industry – as some sort of special love festival for Big Oil is dishonest.
Oil companies will simply pass the $4 billion on to the consumers via higher prices at the pump. If 0bama is reelected gas will be $10 at the end of his term.
So true. If the legitimate tax exemption were take away the price of gas would rise,but Obama wants that anyway.
But the thing that gets me is : What is 4 Billion dollars when we have a Trillion dollar deficit? Peanuts.
Obama burns a Billion dollars in jet fuel, for him and the Wookie.
I'm sick of the lies
In my state on a local radio show a state legislator stated that he is happy that they have capped the gasoline tax at 2 dollars! so the state racks in 2 dollars and does absolutely nothing for this 2 dollars, it's like a vig for the mafia and the evil oil companies who work to bring us the product gets the remaining 2 dollars. Who the hell are they fooling. Tweet and write your congressman to abolish the state and federal tax on gasoline and it will be brought down to 2 dollars a gallon.
This guy is sounding exactly like Chavez.
Gotta love the replies over at that link. What a hoot.
Just the predicted demonizing of the Oil Industry for the high prices caused by his policys.
What people are not factoring in - the media (governmnet/media complex) - is going to go to all out war for the next 9 months.
They have learned - they pay no penalty for doubel standards, lies, silliness, etc. rational people have already lost any expectation of credibility for the mainstream media - BUT - they are playing for the dummies.
They just plain don’t care.
We could quit subsidizing the oil industry if we simplified the EPA restrictions and allowed US Oil companies to make a decent profit.
:’)
“to start fighting for working families.”
Oh bah jeez, Obama goan free da slaves.
Gr8 job, thks.
“We can’t drill our way out of this problem “ -!
just he usual straw man - he can barely string two sentences togethre without one.
No one said we could.
What we can do - is improve our position by drilling.
This guy is boring - but our society os ful lof idiots - who wil lbuy into it.
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