With the rise in gas prices that is being attributed to either the unrest in the middle east or supply issues, depending on which side of the argument you are on. The political rhetoric is heating up from the Administration and the Democrats about who is to blame. This week they had what amounted to a dog and pony show for Senators when they bought the heads of the United States oil companies before congress to question (read: lambast) them about the 4 billion is subsidies given by congress for oil exploration every year. 4,000,000,000 there is the number given by our government to the oil companies to explore every year. Is it right for our government to fund this endeavor? That is debatable but what must be discussed is the national security implications of fossil fuels. Does anyone see a hybrid tank in our future? Or a solar-powered tank? How long would that last on the battlefield. How about a solar aircraft? Fossil fuels are a big part of our national defense. So helping the United States based oil companies would be to the countries advantage. Now we go back to the exploration for oil and the intended purpose of the money. How much new drilling is going on now. Not as much as should be. If the government was serious about national security, as the name of the last energy bill implied they would commence drilling in every lease on and off shore immediately. Just look at the effect that Bush’s early 2008 announcement lifting the moratorium on drilling and how it drove oil prices down. Look it up.
Now, all the oil companies do federal filings. with the SEC. These filings are subject to criminal prosecution, if the violate Sarbanes-Oxley a federal law instituted after a real fraudulent company, Enron, defrauded stockholders and fooled even the Government. Here is a graphic from that filing
As you can see ExxonMobil paid more for US taxes than it earned here in revenue. It is the big lie the Democrats want you the public to believe. That these companies don’t pay taxes and that the subsidies given to them are a tax break. Do not be fooled a subsidy is a form of bribe from a Senator or Congressperson to a company to keep the election money flowing. Once they start, like any federal program they are hard to stop.
So the lie is that Senatorial Democrats like Chuck Schumer care about how much you and I pay in taxes and that we give some back to oil companies. But every year when these Democrats who are crying foul on one subsidy, Oil, vote for the budget they have given that money freely to those companies. The sad part is that many on either side of the fence want to blame the company or the other side. When in reality “we the people” are the problem. We keep electing these people and sending them to Washington to continue the lies that what they are giving the oil companies is a tax break.
Now here is the really big question. Why are Senatorial Democrats suddenly worried about what would be considered a small subsidy spread out over a few companies? It certainly is not because of the actual spending. We went through this very same charade in 2008 and Congress did nothing. It is a show for you to see that they care. While it is all a lie. Schumer could care less about you. He cares about his office and power. So the question is how are we effected?
Now here is the real story. The American car owner pays lots of gasoline tax. as a matter of fact it is 18.4 cents per gallon and 24.4 cents per gallon for diesel. So 10 gallons of gas will run you $1.84 let’s do some quick math here. on a typical 13 gallon fill up it will cost you $2.39 and you fill your tank once a week that is $124 a year. Now there are 254 million passenger cars registered in the US. so how much tax would the US collect if everyone bought just 13 gallons a week? $31,592,520,000. 31.5 billion to the government for taxes not from the oil companies but through the oil companies. That folks is a tax on us. Bear in mind that this is a low ball number because SUV’s have bigger tanks and so do most passenger cars.
So there are the facts. Now it is up to you. Do we let our politicians run a dog and pony show or do we hold them accountable for the spending they are acting like they don’t want to do. Subsidies are not tax breaks.