California Senator Wants Congress To Cut Oil Company Tax Breaks

VALLEY VILLAGE (AP) — A California Senator has partnered with President Obama in asking Congress to end $4 billion in annual tax breaks for the oil and gas industry.

Drivers in 22 states are paying more than the national average of $3.91 per gallon. In Alaska, California and Connecticut, it’s $4.20 or more. In Valley Village, it’s $4.37.

Exxon Mobil Corp. this week reported nearly $11 billion in profits for the first quarter of this year. Competitors also had huge gains and Boxer believes these companies are profiting from rising pump prices.

“Big oil is taking us to the cleaners every single day. We have to stand up to them,” says Boxer who became a United States Senator in 1993.

In Washington, President Obama has pushed to stop the subsidies while also conceding that would not have an immediate effect on prices. He has also called for the Justice Department to investigate possible price fixing and said this week that he was also prodding oil-producing countries such as Saudi Arabia to increase production.

The president said money recouped from ending the oil and gas tax subsidies should go to new energy resources and research. He said he refuses to cut spending on clean energy initiatives.

Opponents say ending the subsidies would mean tax increases that would end up costing jobs.  They also say those costs would be past onto consumers.

Energy Expert Mark Bernstein doesn’t believe oil companies are colluding to keep the price up. He says they’re just doing business. Although releasing oil from the Strategic Petroleum Reserve would reduce prices at the pump in the short term, in the long term Bernstein believes it’s all about changing consumer habits.

“It wasn’t that long ago when it was $4.00 a gallon before right and people stopped buying SUVs for a little while,” says Bernstein. “Then when prices came back down — not very far — but they came back down, people started buying SUVs again.”

Senate Majority Leader Harry Reid, D-Nev., says he plans to consider Obama’s proposal as early as this coming week.

(TM and © Copyright 2011 CBS Local Media, a division of CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

Comments

One Comment

  1. Marco says:

    Is Canada a democratic country?

    1. GSP says:

      Is it even a country?

  2. John says:

    The Bakken field has over half a TRILLION barrels of oil. WHY are we paying any middle eastern country a dime for oil we can get ourselves for less money? I believe the Saudis are paying off enviro wackos to keep us dependent on them for supply.

    1. WJC says:

      I agree John,

      There is no reason to buy oil from anyone else, we have more oil in the United States than most reserves around the world. Stop importing oil and drill at home!
      Now!

  3. ILLEGALS says:

    Are you ready for $6+ a gallon for GAS?

  4. first last says:

    Big oil is taking us to the cleaners every single day. We have to stand up to them,” says Boxer .President Obama has pushed to stop the subsidies while also conceding that would not have an immediate effect on prices .Opponents say ending the subsidies would mean tax increases that would end up costing jobs. They also say those costs would be past onto consumers. That ought to show the Big Oil guys who’s Boss!

  5. Bryan Marriott says:

    Only way to fix the problem is remove the green people from the planet by whatever means necessary. We have the oil here we can’t get to because of the tree huggers. See a prius? The driver is an idiot.

  6. Alan Hart says:

    Am I the only one who sees that ending the tax breaks for oil companies will only increase the cost of gas? Corporations don’t pay taxes. They pass this cost off to their customers. So, if they raise the tax on oil, we will be paying for it.

  7. tbaby says:

    And the answer wasss? Hear the big toilet in the government go…swoosh as that idea goes bust!!!! Use our own resources, but how will they line their pockets with all the kickbacks they get.

  8. rmoore says:

    If you take the subsidy from the oil companies who do you think they will pass the cost on to! Look in the mirror….They won’t lose.

  9. Just a Thought says:

    Big oil is like Vegas…. The house always wins. One way or another, and whether or not we drill here (umm anyone remember what happened in the Gulf some months ago?) Big Oil will win and we’ll be left holding the check

  10. Our4Herself says:

    If Boxer wants it watch out! Must be good for her BAD for us…. Just saying…

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