Posted on 05/12/2011 12:35:31 PM PDT by markomalley
Five executives from America’s leading oil companies were marched in front of the Senate Finance Committee Thursday morning for a public scolding, and told to defend industry tax breaks while Americans are being charged $4 for a gallon of gas.
In other words, Thursday was judgment day the CEO’s of the country’s five largest oil companies. And because most of the committee’s Republicans were attending a budget meeting at the White House, the executives were left to face a very partisan, very unhappy panel of Democrats.
Representing the scorned oil industry was John Watson of Chevron, Marvin Odum of Shell Oil, James Mulva of ConocoPhillips, H. Lamar McKay of BP America, and Rex Tillerson of ExxonMobil.
The hearing came after the committee’s chairman, Sen. Max Baucus, introduced legislation to repeal $21 billion over ten years in tax credits for oil and natural gas companies. In the House, however, legislation was passed Wednesday to actually expand access to offshore drilling.
Nonetheless, Democrats are on the warpath against record profits and tax breaks for an industry that they say should “share in the sacrifice”.
On the other side, Republicans defend the tax breaks, saying they facilitate increased access for drilling, which ultimately leads to lower costs for production and prices at the pump.
Sen. Orrin Hatch of Utah, the lone Republican in attendance for most of the hearing, argued that cutting the tax breaks would do nothing to ease pain at the pump.
The message brought by the industry execs: no one is asking for special government subsidies, only equitable treatment in the tax system that other industries receive.
“It’s not a subsidy; it’s a legitimate tax deduction,” said Tillerson.
(Excerpt) Read more at dailycaller.com ...
$21 Billion in tax "breaks" over 10 years = $2.1 billion per year = 0.15% of this year's estimated DEFICIT and 0.058% of the current fiscal year's BUDGET. IOW: a drop in the bucket. And even that assumes:
A. the additional tax revenue actually materializes (as though oil companies would not change their behavior and accounting decisions in response to a change in tax preferences) and
B. The money isn't simply spent by Congress, which given their history is a real knee-slapper..
Why do you have “liberal friends”?
Tax increase hearings take America in wrong direction on energy
http://api.org/Newsroom/tax-increase-wrong.cfm
Bill Bush - May 12, 2011
Jack Gerard, President and CEO of the American Petroleum Institute, said the Senate oil and natural gas company CEO hearing today focused on a failed policy prescription that would move the nation in the wrong direction on energy:
“Raising energy taxes will do nothing to create jobs, reduce prices, enhance our energy security or increase revenue to our government long term. The hearing was predictable political theater, a distraction aimed at masking past energy policy failures that contributed to the volatile prices consumers are understandably concerned about. It was also an uninformed, unmerited assault on some of America’s biggest and most reliable employers, who are investing billions of dollars annually in new energy projects while also paying many billions of dollars a year in taxes at some of the highest effective rates for any American industry or business.
“We can address our energy challenges by developing more energy at home. That will create jobs and more energy and help strengthen the security of our energy supplies. With this spectacle now over, we hope policymakers will come together in a bipartisan way to work on energy policy that will work for America.”
- - - -
We need more jobs, more domestic production, not more Taxes.
http://api.org/policy/americatowork/index.cfm
The number one cause is government regulations, particularly environmental permitting.
Well Bobby, since the tax proposal singles out 5 specific companies for special punitive treatment, it flies in the face of equal protection under the law and could be argued as a bill of attainder which makes it a violation of the very Constitution of the United States. Sounds pretty unAmerican to me. If that "questions your patriotism" then so be it. Take offense all you want, but it is you and your liberal friends in Congress destroying the economy, not the oil executives.
"You watch your a$$."
Where do you propose that they drill more, and how do you propose that they get the EPA permits to drill?
The Democrats find it easy to pillory evil big oil, but cutting their tax breaks will not drop the price of gasoline one cent and will punish the stock holders, mostly pension funds, who own 95% of evil big oil. This is the usual Democrat play book, a handful evil capitalist fat cats make money from their corporations on the backs of the working man. This is the same BS communists and socialists have used for over 100 years. Too bad the economically ignorant population as well as some members of Congress still believe this crap.
The 5 billion dollars this tax increase would generate would cover the deficit generated by this out of control government in one morning.
Well having the limited refining capacity we have making 96 different types of fuel to meet state and Federal "clean air" standards for summer driving might have something to do with it
The only reason that prices ticked down at all was because of reduced demand at a time when it is normally very high.
Can't question something that does not exist
All part of the rat’s plan to drive prices even higher.
Pure ravening idiocy.
Why is it the Democrat stooges scream the same lie EVERY single time the price of gas has gone up since the 1970s? Yet no matter HOW many "investigations" they launch they NEVER find any "gouging".
So rather then clinging to the lie, maybe you better start questioning why your Democrat party masters have been lying to you for the last 4 decades about energy?
Total made up BS. This is why you Leftists are such contemptible scumbags. You are totally willing to make crap up rather then EVER question your party master's dogma du jour.
I'm confused?
This is so 70’s.
Wev’e heard this crap from congress so many times we can write it down verbatum!
We know dammed well who’s screwing up the nation and it’s congress!
These politicians need to go! 2012 is coming, take a conservative friend to the polls and vote!
Why should American voters be pissed at oil companies making $.10 on a sale of a gallon of gas and NOT be pissed that state and Federal Government makes $1+ on that same gallon of gas?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.