Fiscal cliff deal exempted Big Oil’s billion dollar subsidies

Who but Congress could forget about Big Oil?

The most profitable business on the planet needs help, so naturally it makes sense for middle class taxes to go up with the fiscal cliff deal, but billions to an industry that has been enjoying stunning profits are maintained. Okay, gotcha.

The poor little lambs of Big Oil still need help making a buck, but please don’t call them “entitled.”

The final fiscal cliff deal does not touch oil and gas subsidies, confirms Rory Cooper, a spokesman for House Majority Leader Eric Cantor (R-Va.). Ending the costliest tax breaks for oil and gas companies would have raised tens of billions of dollars in revenue. Trimming just a handful of these breaks for the big five companies—BP, Chevron, ConocoPhillips, ExxonMobil, and Shell—would’ve raised $24 billion over the next decade. President Obama’s 2012 budget proposal called for ending 13 breaks benefiting oil and gas companies of all sizes; it would have saved $46 billion over 10 years.

There was a window of time around the November elections when it looked as if these subsidies might, just might, face even the slightest cuts. At the first presidential debate, Mitt Romney, whose closest allies included the head of the oil lobby, said oil subsidies were on the table if corporate taxes were lowered. Rep. Fred Upton (R-Mich.), chair of the powerful House energy and commerce committee, said in a debate that he’d end all energy subsidies, including those for oil and gas. And a week after the election, House Speaker John Boehner (R-Ohio) refused to rule out trimming oil and gas subsidies as part of a fiscal cliff deal.

Don’t forget about Big Oil the next time a mouthy CEO talks about the need for entitlement reform. All of these companies have been big recipients of handouts from the government for years – but you’re the freeloader.

And finally, did anyone really expect Congress to bother to show any leadership on trimming their own fat benefits? No, they still have the same comfortable rather-high salaries (in the $175,000 range for most members), the same state-of-the-art health insurance plan subsidized by you and me (but how dare they subsidize our health insurance!)

See, Congress is much better than the rest, so to ask them to accept cuts would be like asking the bank or Big Oil to accept cuts – downright un-American.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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5 Responses to “Fiscal cliff deal exempted Big Oil’s billion dollar subsidies”

  1. Brant Olson says:

    Glad to see AmericaBlog talking about this sleeper issue. Here’s the oil money that NRDC would like to see on the table: $100 per taxpayer every year!

  2. samizdat says:

    Well, as mf_roe notes, it takes two to tango, and the Democratic Party makes for a an excellent dancing partner to the GOP. Naturally, the ‘Pukes are leading.

  3. Hvacrpro says:

    The Fiscal Cliff and the Republican Recession is owned by the GOP.
    Nothing you can do to change it.
    Fiscal Cliff came about from the GOP capping the Stim Funds bill they pre approved for releasing in disbursments to grow the economy and jobs as it is needed, later it was used to bargain a tax cut exemption for millionaires and billionares, as if it was to be used to create a business to be tax exempt… not a legit business or even to hire enough employees permanently to even qualify for such.
    The GOP thumbed their nose at the People for everything and anything under the sun to blame dems and the pres… meanwhile having hypocrite double standards. all they needed to do is to be fiscal conservative under the g dumbya trickle down screw u economics era…. and there would be no reasons to play the big gop govt role to the rescue now….
    notice how the GOP Gov’d States all have Red State Taxation?? and are the Highest poverty stricken states??? Epic Fail.

  4. mf_roe says:

    The Fiscal cliff deal isn’t anything but betrayal of the wishes of the voters who re-elected Obama. Once you understand that, it all makes sense. Obama is an illusion, like in the beer commercials where drinking a lot of beer will get you the pretty girl/ hunky guy. He is dismantling the system that allowed him to succeed, nothing else so exposes his true character.

  5. BeccaM says:

    The amount “saved” by the federal government if they raise the Medicare eligibility age by two years? $5.7 billion. (Although in reality it merely transfers the cost to seniors, employers, the younger insured in the form of higher premiums, and the states to the tune of $11.4 billion.)

    But hey, we haven’t yet completely wrecked the biosphere yet, so let’s keep on pumping those hydrocarbons and other greenhouse gases into the air!

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