It is rare that that the Washington power stuggle between the rights of American taxpayers and special interest influence comes so sharply into focus.The hearing now before Congress into oil profits and subsidies is one of those rare times.
The issue is very clearcut. Oil companies had a profit of $123 billion in 2007, record profits by any measure. Yet oil company executives testify at the hearings that they need the $18 billion of taxpayer subsidies.
The executives claim for this huge subsidy is outrageous. Their claim is that they need the money to search for more oil and gas sources. The fallacy is that public money would be used to find the oil and gas, but the profits from any find goes to the oil companies with the American public holding a very empty bag.Actually, with gas over $3.00 per gallon, the public is holding a very expensive gas nozzle.
The House agrees that there is no possible justification for the oil subsidies. It is still an open question in the Senate and President Bush says that he will veto any bill that does not include the $18 billion subsidies.
How can such an open and shut case for refusing the subsidies still be considered in the Senate? The answer, of course, is the millions of dollars that oil companies pour into political campaigns. When will the American public realize that the money that corporations pour into political campaigns is an investment? The investment pays off very handsomely for the oil companies when they receive subsidies or tax breaks. They invest millions, they get back billions;not a bad investment, but the American public loses big time.
In a very clear fashion, the case agains Congress boils down to this: Whose interests will Congress protect, the taxpayers who elected them or the oil corporations who shovel money at them? The moment of truth for Congress will come when they actually vote; everything else is just window dressing.
When Congress votes, will the vote elimninate the $18 billion tax subsidy or won't it? If Congress votes to keep the subsidy, their position is known and you, the taxpayer, will know how your public servants are serving you.
No spin by NoSpinicus