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US26 - End Oil Subsidies
| End subsidies for oil companies | |
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Description
Oil companies enjoy billions of dollars in tax subsidies, yet have record profits. Spend the money on alternative energy investment!
Arguments
These companies should not only have their specific subsidies halted, but should be forced to pay taxes to pay for the money spent on securing their supplies by the US military. Not just the Iraq debacle, but the continued presence of massive naval and air power around the world and especially in the Persian Gulf.
There is no reason why we should be giving tax subsidies to major oil companies -- particularly when they are making record profits.
Source: kaineforva.com
We have substantial evidence that oil company CEOs and BODs are only concerned about maximizing profits from oil extraction by any means, at any cost. They are not motivated by clean energy, health of life on Earth, or even applying a modicum of intelligence to oil extraction methods (fracking and Deepwater Horizon are cases in point). When they have had a chance to demonstrate support for and interest in alternatives, they have utterly failed to do so (efforts to overturn California's prop 32 is a case in point http://bit.ly/OxVlOB). Moreover, I suspect these companies would find a way to subvert incentives and use the funds to further exploit oil resources.
Winning this fight to end oil subsidies would be a great symbol of progress in countering special interests with rational thought and the will of the people.
While the oil industry has reaped record profits and gas prices have soared, Congress has helped Big Oil with generous tax subsidies. These subsidies are unnecessary and we should put an end to them. When we need to control government spending there is no justification for a $41 billion giveaway to Big Oil.
Source: elizebethesty.com
By repealing the tax breaks to multi-national oil companies, we can reduce the deficit and invest in clean energy jobs. Renewable energy like wind and solar, will reduce our dependence on foreign oil, lower energy costs and create millions of jobs that cannot be shipped overseas.
Source: pelosi.house.gov
Source: pelosi.house.gov
There are many alternative energy companies that have started and/or established themselves because they're motivated by profiting from engaging in Earth-friendly business ventures. They're self-motivated--and that's the best type of motivation!
Imo, we need to create disincentives for selling oil at all, while we reward those businesses that are helping to establish a clean energy future.
With all these viable Green technologies, we really don't need to throw good money after bad by paying oil companies for any reason:
Right now, renewable energy is forced to compete with old, dirty energy sources like oil and coal that get billions in special breaks from Washington.
Source: elizabethwarren.com
Remove tax subsidies for oil companies gradually to avoid economic shocks, and use the money to pay off the national debt and lower tax rates overall.
Counterarguments
Offer subsidies to oil companies to convert to renewables
Why are companies allowed to own gas anyway when all they do is charge more whatever global prices are?!If the government supplied gas, they wouldn't need to make multi-gazillion dollar profits! Then actual people would be able to benefit from America's newly-found shale gas deposits. WE NEED GASSY GOVERNMENT!!
Whereas the individual oil companies do profit, the net effect of removing subsidies would mean skyrocketing costs for fuel. Given the global economic situation, this is not the time to force a major catalyst of recession onto developed countries.
Here's the scenarios:
1. Public companies that extract, refine and distribute oil for fuel would see a significant decline in profits (as is what you intend because you demonize success), but a public company that doesnt sustain profits, cant sustain operations - they would fire people, and raise costs to you and me to continue operations at the same economic levels to shareholders. Subsidies to oil companies has a direct effect on consumers by holding prices down.
2. removing subsidies would incent public companies that extract, refine and distribute oil for fuel to only focus on core operations, and not on improving the process, or in alternative non-fossil initiatives. This is counter to your objectives. Subsidies are explicitly set for these purposes, and which many of these companies take.
There are some specific subsidies that should not be necessary, but for your proposal to be taken serious, you have to get specific. I suggest the removal of the cost-depleting credits, which would save about 4 billion annually to taxpayers.
- If we eliminate subsidies for these companies then we have to for all companies, including for individuals.
6 Topics
Discussion
started
by GregOrr
on Sep 3
Subsidies don't just flow through to consumers
Subsidies help oil companies produce more, charge a lower price, and make higher profits. Some subsidy dollars are returned to the taxpayer through lower prices at the pump, and some stay in corporate coffers. The bigger issue is whether we want to encourage carbon consumption. We have gasoline taxes which discourage consumption and we should end subsidies for oil companies so that our policy is consistent and makes sense. We shouldn't tax and subsidize oil.
What are the subsidies exactly? (2 replies)
A 2009 study by the Environmental Law Institute assessed the size and structure of U.S. energy subsidies over the 2002–2008 period. The study estimated that subsidies to fossil-fuel based sources amounted to approximately $72 billion over this period.
The three largest fossil fuel subsidies were:
- Foreign tax credit ($15.3 billion)
- Credit for production of non-conventional fuels ($14.1 billion)
- Oil and Gas exploration and development expensing ($7.1 billion)
Source: wikipedia.org
Subsidies would be better spent elsewhere (3 replies)
Give them instead to the renewable energy sector to help spur thousands of new jobs in the solar, wind, fuel cell, biomass, and hydropower fields. See US356 - Jobs in the Clean Energy Sector
started
by dfunked
on May 19
not all subsidies are created equal.
Oil companies get specific deductions that you and and your non-oil business dont.
Clearly they dont need them, as they dominate the top earning companies most years.
YOU are subsidizing them, regardless of whether or not you use their products.
YOU are also heavily funding a military that guarantees their supply.
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How to keep oil prices down