Last week, National Journal's Political Insiders poll found a general consensus among Democrats and Republicans: rising gas prices help the GOP. Part of this likely because there's a Democrat currently in the White House, part of it has to do messaging: pain at the pump encourages Republicans to push for more drilling.
But it turns out Democrats are not without a case of their own. Instead of just pushing back against the GOP talking points, and explaining that new drilling won't actually lower gas prices, Dems are targeting generous tax subsidies currently going to the oil industry -- subsidies Republicans are desperate to protect.
Here, for example, was President Obama's message in a speech in New Hampshire earlier today.
For those who can't watch clips online, here's the quote:
"Right now, 4 billion of your tax dollars -- 4 billion -- subsidize the oil industry every year. Four billion dollars. These companies that are making record profits right now -- tens of billions of dollars a year. Every time you fill up your gas tank, they're making money. Does anyone really think Congress should give them another 4 billion dollars this year?
"Of course not. That's outrageous. It's inexcusable. And I am asking Congress to eliminate this oil industry giveaway right away. I want them to vote on this in the next few weeks. Let's put every single member of Congress on record -- you can either stand up for the oil companies, or you can stand up for the American people. You can keep subsidizing a fossil fuel that's been getting taxpayer dollars for a century, or you can place your bets on a clean energy future. So I'm asking everybody here today, and everyone watching at home, let your members of Congress know where you stand."
DCCC Chair Steve Israel (D-N.Y.) is thinking along the same lines, telling Greg Sargent last week, "We've told our candidates that they should remind people that we've actually increased domestic energy production, and talk about solutions-oriented energy policies that would end our catastrophic dependence on foreign oil. We are urging them to hold House Republicans accountable for consistently protecting oil company subsidies."
Of course, it's only fair to ask whether eliminating oil-industry tax subsidies would actually lower prices. The answer is pretty straightforward: the move would offer about as much relief at the pump as "drill, baby, drill."
The point, in other words, is political -- every time a consumer fills up his or her tank, Democrats want that American to think, "I'm paying for the gas and I'm paying for the tax subsidies going to wealthy oil companies that don't need them."
In an election year, that's a fairly potent concept, especially since drilling isn't all that popular anyway. In plenty of congressional districts, if the debate this fall comes down to a Dem who's pushing alternative fuels and a Republican fighting tooth and nail to give subsidies to ExxonMobil, it's the sort of dynamic that may undermine the GOP's edge on the issue.
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I tried e-mailing my Congressman about stopping the tax subsidies but I couldn't get through. I saw the speech and it was enlightening. I can predict what the Republicans will say though and it is how can the government tell you what car to buy? Just watch.
Hey! You can't take away santa's bonus. How can the oil companies afford all those republicans without the subsidy? (not to mention quite a few democrats they have on retainer also)
What next? Making them pay fair royalties to America for wells on public land?
Easy: Push to swap subsidies for biofuels such as algae and then corner the market on it. ExxonMobil has a good head start in that department. Of course this'll be after a long, hard-fought battle to keep the subsidies in place to make sure competitive renewable energy sources are stamped out.
If a congressman votes to protect the subsidies then a recipient of those subsidies can use that money to donate to the congressman's campaign.
We used to call that kickback. This is typically not acceptable for conflict of interest reasons. Doesn't apply to congress though.
Now about that insider information for stock purchases and earmarks to make property that was purchased by politicians in congress more valuable.
I'm non partisan on this one.
All the oil we produce is sold on the international market. That is a fact.
What is the point of the point of the oil subsidies? To increase domestic production which is then sold on the open market.
Do we really want to try and lower international oil prices with our miniscule percentage of supply? Not only is it futile it is a waste of money.
The only way this makes sense is if we regulate oil and keep it in this country. Which is not an option.
Our subsidies are a relic of a past which has no relevance to the current free market system. They exist only to enrich big oil. They have no other purpose.
If we are drilling for more oil domestically than we consume, why are we talking about "catastrophic foreign dependence on foreign oil"? What am I missing? And even if we are exporting domestic oil while importing foreign oil, it doesn't matter. Oil is oil. Although it would be interesting to know why.
All the oil goes on the international marketplace. Our subsidies to big oil are a total waste for the tax payer. We get nothing. Big Oil gets 4 billion cash and uses a small portion to buy the politicians who support it.
I hope that the Republicans use my idiot representative to address the issue for them.
When confronted by this at a townhall meeting over a year ago, he stated that he had no idea about this issue. That's despite the fact that he had voted for the subsidies and the fact that it had been front page news for 4-6 weeks.
A couple of months later. Another townhall meeting. Same question. This time he said that none of the money was related to oil, that the money was being used to bolster manufacturing by the oil companies. When it was later pointed out to him that the oil industry doesn't have manufacturing facilities, he avoided the question.
So please Republicans, let Rep. Randy Hultgren be your spokesperson!!!
What a snob.
These snobs just won't quit will they?
I also want Obama to tell the American public just where all that "drill-baby-drill" oil product is going: overseas. If it stayed in the US then we really would be set with jobs and domestic energy for another hundred plus years. Then the tax subsidies might make more sense. But it's not staying here, in the US. People will be complaining about 5 and 6$/gal. gas at the pump. In England, it's much, much higher and it's per litre. In 2003, in London, price at the pump averaged 8 pounds/litre, which at the time translated roughly to $2 American dollar/pound(+/- a few cents). And remember - a litre is not a gallon! If this is still the price overseas at the pump, (and maybe it's lower) then of course companies are going to export our oil to the highest paying markets. That's capitalism - baby- capitalism. Get used to it, dear "drill" babies.
If dem bastards won't let you tax dem, den take away dair tax subsidies! Dey screwing us at the pump, and, through dair merciless lobbying, dey screwing us in the House of the People!
Don't drill, unless you drill the corporate person who gets the subsidy when real live, breathing persons get nothing! If a corporate person gets a subsidy, I deserve one too! If I don't get mine, dose bastards don't deserve dairs! Cut dem off, and make dem earn a profit the old fashion way - through honesty and hard work!
Dem corporate persons people like Willard keep protecting need to begin being more patriotic and pay dair fair share! Until then, the oil industries apologists (I've got my eyes on you Republicans) need to STFU! -Kevo
Of course, it's only fair to ask whether eliminating oil-industry tax subsidies would actually lower prices. The answer is pretty straightforward: the move would offer about as much relief at the pump as "drill, baby, drill."
Maybe the Dems should propose using the $4 billion to to reduce the federal gas tax.
It’s not just the energy industry that the tax code shouldn’t be subsidizing. It’s all industries. And since not every industry gets one, tax breaks enable the tax code to pick winners and losers. http://bit.ly/wkIlN5
To increase tax fairness the corporate tax code needs to be overhauled by removing tax breaks and lowering the tax rate. Unfortunately, the President’s corporate tax reform proposal actually increases the unfairness in the tax code by giving the manufacturing industry a preferential tax rate. http://bit.ly/wQjofx
The most sensible reform can be found in the Bowles-Simpson deficit reduction plan which would lead to increased tax fairness and increased U.S. corporate competitiveness. http://bit.ly/noTDPF
Forget loop holes all the rhetoric. There is a simple answer.
Legislate a Buffet Rule for Business.
Make them pay what the 99% pay.
Be careful of what you wish. Half of the "99%? don't pay taxes
That is a lie. We pay sale tax, license taxes, state, and local taxes and that is a short list. Even a homeless drunk pays a liquor tax.
Since the rich so called job creators haven't created any jobs despite doubling the income they get, many real people don't pay Federal taxes anymore. If the rich take all the money they can't complain when we don't pay tax on what we no longer have, income.
Well they can complain and they do but it is hypocrisy.
I have to say this LONG overdue. Although his SuperPAC probably had a feed-line or two clamped.
Republican campaign strategy: Beat the drums for war with Iran. The Iranians respond with their own saber-rattling. International tensions increase. Worldwide markets fear oil shortages. Oil and therefore gas prices rise. THEN BLAME POTUS!
Has anyone thought to look at the question of a Republican conspiracy with the big rise in oil prices? Consider:
The country is "awash in oil" according to reports. There's been a 10 percent increase in drilling thanks to Administration actions, and the country is a net exporter of oil for the first time in 62 years. With all that oil on hand, prices should be going DOWN, but instead they look to hit $5/gallon this summer, painful for all Americans and making your average American political illiterate very open to the "Drill Baby Drill!" GOP baloney and the Republican attacks on the Obama administration for "killing" oil exploitation.
Consider that the oil industry is a "Republican business" (as in, they are all Republicans). Consider the Republican economic sabotage already seen in other areas of the economy, and the Republicn political belief that if things stay bad with the economy that will help them politically, so raising prices doesn't just bring in additional profit, it profits them politically to harm the Democrats. These people stole elections in 2000 and 2004 and tried in 2008, and have been beavering away since then to steal this one in 2012. This is just more of their treasonous conspiracy against the republic.
Does anyone seriously think these traitors WOULDN'T do such a thing????
The Justice Department should be investigating these people for fraud, conspiracy, violation of the anti-trust laws, and exposing their treason against the country. People don't like the oil companies, so exposing them as the Republican frauds they are would be a political plus for sure.
BTW, rewind. See Rachel's brilliant piece from June 2010 on the myth of energy independence here:
http://www.youtube.com/watch?v=c0--Q9_KmAY
I thought those who proclaim they want government out of the free market would be against subsidies. But as usual the Republicans only want to do it where it is needed the least and makes no sense.
Speaking as an independent, and for myself, I believe the govt should be out of all business subsidies. That includes not only oil, but etholnol, solar windmill farms, Chevy Volt, and any other corporate ventures. It's fine to fund research, but let the market decide what makes sense. And, if the Pres thinks the price is being manipulated, let him unleash the incompetent Holder to beGIN YET ANOTHER INVESTIGATION. All in the past have proven nothing.
perish the ignorance of Republican naysayers on the 'weird energy' of President Obama, and laughing about bacteria as an energy source. There are many thoughts about energy alternatives such as solar collectors becoming super efficient thru the use of green bacteria and coupling solar collection stations with nanotechnology transmission so that we always have collection 'on' as the world rotates. Or just making energy with bacteria in the first place. The entire point about planning for the future is to make us truly less dependent on oil and perhaps leraning how to not poison ourselves and environment by continuing on 'the same path.' A good talk with a thought about using our noodle: ww.ted.com/talks/lang/en/richard_sears_planning_for_the_end_of_oil.html
The scary thought is that Congressional leadership and proposed presidential candidates want to live on in ignorance and apparently have lost their sense of wonder about what we can do if we put funding in research and development. I was so taken aback by all that facetious hilarity.
We have been talking about energy alternatives for decades, but until one is cheaper to use and safer than what is available now it will not replace it. We have spent billions if not trillions on energy alternatives and where has it gotten us? The efforts to advance energy alternatives by making petroleum products more and more expensive is just plain ignorant. Make a better mouse trap and people will buy it.
I know that you all just love Obama's one liner, but do you ever stop and think if it makes sense? Go ahead and cut the subsidies to oil industry. What do you think will happen. First, all oil related products, like gasoline, will go up even further. Second, any product that is shipped via any vessel that uses oil based products (ships, trucks, rail) will go up due to increased shipping costs. What happens when prices go up? They pay more to drive to work and buy necessities like groceries, which means disposable income goes down. We buy less products, so companies that produce those products have to lay off workers, and on and on. Not every consequence of an action is direct, but you really need to think about them first.
Mrs. Maddow, your hair is just....awful...thanks.
Sure Rachel. Lets simply cut the subsidies to all the oil companies then when gas reaches $5.00/gal you can keep blaming republicans. You are nothing but a partisan hack, And a bad one at that.
The entire world recognizes that the current spike in world oil prices rests squarely on this Democratic Administration's energy policy and lack thereof.... The administration wants to block all U.S. exploration and development and even a pipeline that won't help prices for several years... They also have no real plan to replace oil... Yes they talk about phantom developing technology and throw taxpayers money to their political donors.... BUT, Until this country becomes proactive there will continue to be rampant aggressive oil speculation... Prices will continue to rise and with the bill Obama just signed into law curbing free speech and overriding the constitution good luck complaining about it.... The intent of all progressives regardless of political party is first and foremost to promote Socialism... The 'Class Warfare' promoted by the Administration and the liberal media will leave the Nation bankrupt and with two classes... The political class and the subjects of the political class... And don't think that electing a "Progressive" Libertarian or Republican will help... the methodology and tactics are different but the goal is the same..
I have read a wonderful blog from Chris Crosby. His proposal might be of great help.
To learn more, here is the blog:
http://chriscrosby.net/blog/2012/03/16/americas-gas-pains/