Gallery: Democrats Seek to Balance the Budget by Ending $21 Billion in ...

 

Senate Democrats announced a plan on Tuesday to help fix the national budget by ending decades-long subsidies for big oil that would mean $21 billion in new revenue over the next ten years. The plan was announced as a comeback for the Republicans’ proposal that $2 trillion in spending cuts be traded for Republican support to raise the national debt ceiling. With Americans still complaining about gas prices and the biggest oil companies still raking in record profits, Democrats believe calling attention to this disparity by cutting tax loopholes for big oil is the best thing to do. We’d love to see this plan go through and become an impetus for more renewable energy research but as always, we’re not holding our breath.

Read the rest of this entry »

LEAVE A COMMENT

or your inhabitat account below



4 Comments

  1. jafo May 16, 2011 at 12:36 am

    Well, it depends on the problem you want to solve as to the answers we need to explore.
    If it is the budget, the tax breaks and even subsidies will have very little impact to the positive. Companies by and large do not pay taxes. They operate on a profit margin. Increase any of the underlying inputs that go in to the price and if they keep the margin the same the price will have to go up. Therefore, in a very real sense, the are only collecting the taxes from the end user. Make the product cost more, people will buy less, and you will earn less revenue.
    If, we are seeking to end dependence on foreign oil, then we need to get out of the way of the oil industry and let them “drill baby drill”. This will decrease our need to import the oil and probably decrease prices in the shortest amount of time of any solution on the table.
    If, we are wanting to move to a more sustainable way of living, then we need to end the breaks and perhaps spend the money on research. This will not have a short term effect (other than higher prices for everything), but probably has the best long term results.
    I personally think it is a dangerous step to take to monkey with the tax code in such a way to force it to target just a few companies. If the tax breaks are so evil, end them from everyone. Make it an even playing field. We should not have the government get in to the practice of choosing which individual companies to punish or reward. That is a very scary road to me.

  2. Red vs. Blue is BS May 11, 2011 at 3:11 pm

    No. Let’s argue about who’s fault it is, rather than solve the problem.

  3. R_cavaretti May 11, 2011 at 10:52 am

    Fact: you’re delusional if you believe any drilling here and now will have ANY impact on the future of gas availability or pricing.

    I’m perfectly fine with letting the oil companies stand on their own, as I am with $4 or more per gallon gas. Then and only then will it spur innovation and remove us from the choke hold that is the petroleum industry.

  4. ajdorsey May 11, 2011 at 10:23 am

    Fact | The Oil industry only has an 8% profit margin.

    The Democrats are the ones who are perfectly fine with $4 a gallon gasoline. They won’t allow any drilling to keep prices reasonable for the elderly and for society as a whole.

get the free Inhabitat newsletter

Submit this form
popular today
all time
most commented
more popular stories >
more popular stories >
more popular stories >
Federated Media Publishing - Home