Stop Subsidizing Big Oil

Obama and the Democrats want to end $4 billion a year subsidies to oil companies.

One could call it ending corporate oil welfare.

Naturally most Republicans are opposed and want to continue subsidies to big oil. This is a big deal in the oil producing states like Oklahoma and Texas. However Republicans Boehner and Ryan have stated their opposition to subsidies.

There is a little thing called an oil depletion allowance which is a complex formula for allowing big oil to pay less taxes.

You need to be an accountant to understand the details.

Oil Depletion Allowance

CS Monitor: Gasoline prices are up to $4 a gallon. Is that 'Big Oil's' fault?

ExxonMobil reports first-quarter profits of $10.7 billion – 69 percent above the company’s first quarter of 2010. Royal Dutch Shell marked $6.9 billion in profits, an increase of 40 percent over last year’s first-quarter number. Chevron Corp. saw its first-quarter net income go up 36 percent to $6.2 billion. BP made $5.5 billion.


“We’re talking about reforming the safety net, the welfare system; we also want to get rid of corporate welfare,” House Budget Committee Chairman Rep. Paul Ryan (R) of Wisconsin said. “And corporate welfare goes to agribusiness companies, energy companies, financial services companies, so we propose to repeal all that.”