Sen. Claire McCaskill, D-Missouri, has co-sponsored legislation that would eliminate $4 billion a year in subsidies and tax breaks for the worlds five largest oil companies, using the savings to reduce the federal deficit. With oil company profits rising as oil and gas prices souring, this would seem like a no brainer, who could possibly argue that Exxon, BP, Shell, Chevron and ConocoPhillips need special help from taxpayers to stay in business? Missouri's other Senator, republican Roy Blunt.
Sen. Blunt and other republicans argue that oil companies will simply "pass on" the lost subsidies to consumers who will pay more at the pump. To which I say, so what? It's a strange argument for small government, free market republicans to make. After all, why shouldn't the people who use the product have to pay the full price of that product? Why should the guy driving a dinky little car that makes decent gas mileage have his tax dollars subsidize the guy driving an SUV? Given that we are running a huge deficit, we are really asking future taxpayers to subsidies today's drivers. Is that fair?
Sen. Blunt and other republicans argue that oil companies will simply "pass on" the lost subsidies to consumers who will pay more at the pump. To which I say, so what? It's a strange argument for small government, free market republicans to make. After all, why shouldn't the people who use the product have to pay the full price of that product? Why should the guy driving a dinky little car that makes decent gas mileage have his tax dollars subsidize the guy driving an SUV? Given that we are running a huge deficit, we are really asking future taxpayers to subsidies today's drivers. Is that fair?
As Sen. McCaskill pointed out, the top 5 oil companies had combined profits of $36 billion in the first quarter of this year alone, and they are among the most profitable companies in the world. And lets be honest, the $4 billion in a tiny fraction of what our nation spends to protect oil interests. We have spent hundreds of billions on wars in the past ten years to protect oil supplies in the middle east, and far too many lives have been lost. I don't think it's too much to ask Big Oil to give up a few tax breaks and subsidies.