Campaign 2010

May 06, 2011

House Republicans Vote to Keep Taxpayer Giveaways to Big Oil Companies

Today, House Republicans voted to protect billions of dollars in taxpayer giveaways for Big Oil companies.  Last week, the big five oil companies reported that their profits increased by 38 percent since this time last year, while middle income families are feeling the squeeze at the gas pump.  Two weeks ago, Republicans voted to end Medicare and raise health care costs for seniors in order to protect these taxpayer giveaways for Big Oil.

 

ExxonMobil reported profits of nearly $11 billion in the first quarter of 2011, a 69 percent increase. Shell reported profits of $7 billion, ConocoPhillips reported profits of $3 billion, Chevron reported $6.2 billion, and BP reported $5.5 billion.

 

“Republicans chose taxpayer funded giveaways for Big Oil companies making record profits rather than doing what’s right for folks squeezed by high prices at the pump,” said Jesse Ferguson of the Democratic Congressional Campaign Committee. “House Republicans’ priorities are clear: protecting Big Oil comes at the expense of seniors and working families. No wonder Big Oil rewards Republicans with generous campaign contributions.”

 

The measure House Republicans opposed would bring the Big Oil Welfare Repeal Act of 2011 (H.R. 1689) to the floor for consideration. H.R. 1689 would amend the Internal Revenue Code to prohibit major oil companies (the Big 5) from receiving a tax deduction for domestic oil and natural gas production activities.

 

Background

 

  • House Republicans opposed a measure that would allow the House of Representatives to approve the Big Oil Welfare Repeal Act of 2011 (H.R. 1689) which would repeal key taxpayer funded subsidies for oil and gas companies. As reported by The Hill newspaper, “House Democrats intend to force a vote on a measure that would eliminate a key oil industry tax break when Republicans bring a bill to expand domestic oil and-gas drilling to the floor Thursday.” [H Res 245, Vote #293, 5/5/11; The Hill, 5/4/11; CBS News, 5/4/11]

 

  • In March, House Republicans opposed a Motion to Recommit that would ensure no “tax benefit” could go to a “major integrated oil company.” [HJ Res 44, Vote #153, 3/01/11]

 

  • Big Oil Profits Up 38 Percent. “Americans spent 28 percent more for gasoline during the first three months of 2011 than the same period in 2010. Meanwhile, the big five oil companies—BP, Chevron, Conoco Phillips, ExxonMobil, and Shell—made 38 percent more profit.” [Center for American Progress, 5/3/11]

 

  • ExxonMobil reported profits of nearly $11 billion in the first quarter of 2011, a 69 percent increase. Shell reported profits of $7 billion, ConocoPhillips reported profits of $3 billion, Chevron reported $6.2 billion, and BP reported $5.5 billion. [Center for American Progress, 5/3/11; ABC News, 4/28/11]

 

  • In March, the Democratic Steering & Policy Committee held a hearing noting that from 2005 to 2009, the largest oil companies have made $485 billion in profits. [climateprogress.org, 3/01/11]

 

  • Voted to End Medicare. Republicans voted to end Medicare by supporting the Ryan budget. [H Con. Res. 34, Vote #277, 4/15/11]

 

  • GOP Budget Would Almost Double Healthcare Costs For Seniors. “The Republican congressman's proposal to privatize Medicare would mean a dramatic hike in U.S. healthcare costs for the elderly, an independent analysis finds. Seniors would pay almost double — more than $12,510 a year.” [LA Times, 4/07/11]

 

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