President Barack Obama on Thursday demanded that Congress eliminate oil and gas company subsidies which he calls an “outrageous government giveaway” at a time when oil companies are raking in record windfall profits as gas prices near $5 per gallon.
In his speech Obama said:
“Let’s put every single member of Congress on record: you can stand with oil companies or you can stand up for the American people.”
The US government currently hands out nearly $4 billion in tax breaks annually to oil and gas company’s, even as many organizations report record profits far exceeding those subsidies.
In asking Congress to eliminate the tax breaks Obama said:
“It’s outrageous. It’s inexcusable. I’m asking Congress: eliminate this oil industry giveaway right away.”
Obama has asked Congress to eliminate the oil and gas subsidies on several occasions and an official speaking on the condition on anonymity says the White House expects Congress to act soon.
In the meantime Republican lawmakers have denounced the idea with the belief that cutting tax breaks to uber-rich oil conglomerates will only force them to increase gas prices further. In the meantime GOP leaders want President Obama to expand oil production in the United States.
Perhaps a combination of increased drilling in the United States and closing tax loopholes for mega-rich oil producing company’s would be the best approach.
Do you think oil company’s which make tens of billions of dollars in revenue each quarter should be allowed to then receive free money from the US government and taxpayers?