Oil Subsidies Repeal Blocked By Industry & Bankrolled Senators

WASHINGTON -- An attempt to repeal some of the billion-dollar tax breaks enjoyed by the five biggest oil companies failed in the Senate Tuesday evening, as expected, when all but two Republicans and three Democrats voted to block its consideration. The final vote was 52 in favor, 48 against -- eight votes shy of the filibuster-proof majority needed to bring the bill to the floor.
All things considered, it was a fairly meek attack on the massive oil and gas subsidies that taxpayers are footing -- even as consumers suffer from high gas prices and industry profits swell to near-record proportions. Tuesday's Senate proposal was only to cut $2 billion worth of subsidies a year from the biggest five companies, and the proceeds would have gone to deficit reduction.
By contrast, President Barack Obama called on Congress in January to eliminate some $4 billion a year in tax breaks to the entire industry, and put the proceeds into alternative energy investment.
And the industry's own lobbying juggernaut, the American Petroleum Institute, estimated that the total cost of all the tax and accounting changes proposed by Obama in his FY 2012 budget could have actually cost the oil and gas industry $90 billion over the next decade. Few if any of the president's budget proposals have even made it onto the congressional agenda.
In spite of a major Democratic push, the watered-down oil subsidies repeal couldn't overcome the industry's hold on Congress.
Campaign donations from the industry are only part of the reason the bill was defeated. There's also an army of lobbyists: The oil and gas companies have spent more than $1 billion on lobbying-related activities since 1998. But looking simply at the amount of money the industry has given senators over the years -- either through political action committees or contributions by people associated with oil and gas companies -- is still telling.
The central dynamic of the vote was the nearly lockstep Republican opposition. While the industry has long favored Republicans with its campaign contributions, in the early ’90s it was by less than a 2 to 1 margin. Starting in the 1996 election cycle, the margin shot up to more than 3 to 1.

Story continues below

http://www.huffingtonpost.com/2011/05/18/oil-subsidies-vote-fails_n_863734.html

 

I am convinced that our government is owned by the oil companies.  The big five are having the most profitable year in their history.  So now we are going to continue to allow them to have their subsidies, because why?  The other day one of our legislators said the billions in subsidies were because the oil companies hire American.  A lot of industries hire American employees and we aren’t giving them subsidies.  What are we doing?  We have left the wolfs to guard the chicken coop.  When a government, governs itself (congress) it is by definition: corrupt.  So let me break this down; we give billions in aid to our enemies, we subsidize big oil and meanwhile we owe China more money than our children will ever be able to pay back. Are we wagging the tail, or is the tail wagging us?