So about those oil subsidies

Last quarter Chevron, ExxonMobil, and Shell earned about $25 billion in profits, yet to listen to Republicans in Congress, you’d think oil companies are really struggling right now. In fact, just a little under two weeks ago, Republican Speaker of the House John Boehner rejected calls by House Democrats for a vote on legislation to repeal tax breaks and subsidies for oil companies, with a Boehner spokesperson telling conservative media outlet The Daily Caller, “The Speaker wants to increase the supply of American energy to lower gas prices and create millions of American jobs,” adding, “Raising taxes will not do that.”

If John Boehner and House Republicans were actually serious about lowering gas prices, they’d start by supporting a crackdown on oil speculating, which is largely to blame for skyrocketing oil prices instead of trying to gut funding for the Commodity Futures Trading Commission (CFTC) – which is charged with policing the country’s futures markets, which include oil speculation.


Related Articles

3 thoughts on “So about those oil subsidies

  1. If John Boehner and House Republicans were actually serious about lowering gas prices: Key takeaway there….they have NO interest in lowering gas prices, the higher they are the better the campaign topic!

    1. Of course Republicans are using this as a political issue, because it’s not about doing what’s right – it’s about winning an election so they can continue to screw things up for the middle class to the benefit of big business and the wealthy.

  2. Zach, if it were just oil you may have a valid point that speculation is the cause for the rise. however, nearly every commodity has increased dramatically in value as the dollar was devalued through QE2 and the stimulus. when the fed pushes money into the economy, cutting i rates and buying bonds and inflation results.

    i think we both would agree that inflation is a tax on the middle class. yet this is what the Feds monetary policy has bought.. if you want to cut speculation its vary easy–just raise margin rates. silver got hammered last week when the cftc raised rates.. no more funding is necessary. I disagree that speculation is the cause of the oil prices, just look at a chart of the us dollar index. there is an established trend and long term however, the commodities will continue to rise until the dollar is stabilized. this of course won’t happen until the US has a balanced budget and reduces its debt.

    in the mean time, oil companies, farmers, ranchers, and miners will benefit.

Comments are closed.