Funding the Oil Companies
June 11, 2008
This week saw the defeat of a Democrat-backed bill that would impose windfall profit taxes on oil companies in light of their continuing record profits (the five biggest U.S. oil companies made $36 billion from January to March of 2008).
While this probably sounds like a great idea to many, especially when the national average for a gallon of gas is above $4, the windfall tax is an unfair tax in that it punishes success and could actually lead to less gas in the market since at some point in becomes less favorable for oil companies to produce fuel than to pay taxes on it.
The real tragedy to American taxpayers is that included in this bill was a provision to strip $18 billion worth of subsidies and tax breaks from the oil companies over the next decade.
If there is an industry which does not need to receive taxpayer money and pay fewer taxes, it is the oil industry and it is unfortunate that the oil giants will continue to pay less than their fair share while average Americans are struggling just to fill up their tanks.
It seems that high oil prices will remain in our future as prices are not expected to lower much, if any, this year. However, if you think it is unfair that you’re spending almost double for fuel this year as last, we urge you to contact your Senator and demand that they support the withdrawal of $18 billion of U.S. tax dollars that could be better spent on alternative fuel research than padding the overflowing coffers of the oil industry.