Why do our taxes pay oil and gas subsidies...?

Question

and then on top of that they have the gall to charge us for gasoline?

Why do we pay welfare to a business that obviously is a failure (only stays in business because of handouts)?

Answer 1

If you want a literal explanation to your question, the oil and gas companies get these tax breaks in order to spur them to invest more money in exploration.

Now although I am not psychic, I know your immediate reaction, "That's such a lame argument. Big Oil is going to invest in exploration no matter what kind of tax breaks they get." However, that is not true.

Have you ever held stock in an oil company? Usually, the returns are very meager. Throughout most of the 1970s and 1980's, the oil companies were making very little return on investment, so their stock prices were not of interest to a lot of investors who wanted something with more potential for getting a good rate of return. Having stock in the oil business was akin to having shares of AT&T. Very boring.

However, when the government gives them subsidies for putting more of their profits back into exploration, it really is a huge incentive.

If you want to complain about the price of oil, direct your anger at the Liberals who prevented any new oil refineries from being built in the U.S. for the last 30 years. Blame the politicians from your state who pile tax upon tax upon tax on the gasoline you buy. Next time you're at the pump, check out how much is going for taxes!

Answer 2

""Why do we pay welfare to a business that obviously is a failure (only stays in business because of handouts)?""

like half the airlines, like amtrak, like some energy companies... yea I understand.
I guess they are consider public necessity.
Often though it comes down to policy. Obviously airlines for example, why is southwest airlines always doing fine yet many others arent.. maybe its management and policies.

Some oversight to say hey if you want the publics money they some change needs to take place that gets you out of the red.

Its a difficult situation but I see your point.

Answer 3

Obviously the guy above me hasn't seen big oil's profit/loss margins lately. It would seem to me that with the enormous amount of profit they are reporting, our government would take them off the welfare roll. However, socialization only works in Amerika if the Corporation is receiving the handout.

Answer 4

Big Oil is running the country, Bush is an oil man, Cheney is highly invested in both Oil and the Military Industrial Complex, so its not hard to figure

Answer 5

Try looking at your own states tax on fuel,or is that Bush's fault,too?