GOP – Grand Oil Party. Republicans vote down measure to end tax breaks for big oil companies.

The GOP stands for the Grand Oil Party, and no longer the Grand Old Party. Why? Yesterday the Republicans voted down a Democratic measure that would have ended the tax breaks for the five largest oil companies. Democratic Senator from New Jersey, Robert Menendez, shares his thoughts on the GOP opposition to a Democrat-led measure that would end a tax break for the five largest oil companies.

UYGUR: Democrats today said that the GOP should be renamed the grand oil party. A little clever but it`s also very apt considering the Republicans voted down a democrat lead measure that would end a tax break for the five largest oil companies. Thereby, protecting their bosses once again. These are the same oil companies that last quarter, that`s just a quarter of a year made $32 billion in profits, not revenue, profits. So instead of ending the most unjust subsidies in United States history, House Republicans passed a measure that would speed up proposed offshore oil and gas lease sales to make the oil companies even more money.

This comes one day after Republicans announced a task force to expand oil drilling. The task force is called House Energy Action Team. HEAT for short. It`s not named after the Robert de Niro, Al Pacino, Bank Heist movie, but there`s definitely a heist going on. The task force is made up of 26 House Republicans who have received over $4 million in campaign contributions from the oil and gas industry over the course of their careers. It includes Mike Conaway from Texas, who`s gotten over $678, 000 from oil. West Virginia Congresswoman Shelley Moore Capito who has received more than 340,000, Fred Upton, who has raked in $262,000. Now, let me ask you something — who do you work for? The guy who pays you, right? The same is true for the Republican Party. They work for the people who pay them. The oil companies, that`s why they keep giving away $40 billion in oil subsidies, as our next guest is about to tell us.

Joining me now is New York Representative Tim Bishop. He unveiled the legislation aimed at ending billions in taxpayer subsidies. Congressman, great to have you here.

REP. TIM BISHOP (D), NEW YORK: Thanks for having me on.

UYGUR: And how did that bill work out for you?

BISHOP: Well, it went down today. We offered one piece of it today. We offered a bill that on what`s called a previous question vote, that would have taken away one of the tax subsidies that the oil companies realized. It is taxing something called the domestic manufacturing tax credit. It cost the taxpayer about $1.3 billion a year, and it is completely unjustified, and completely impossible to reconcile with the prices that the oil companies are charging right now to the American people.

UYGUR: You know, I`m curious to what their argument is. Because first of all, they have lost the American people. You have a poll on eliminating tax credits, 74 percent find that acceptable, we should eliminate them. Only 22 percent find it unacceptable. Three out of the top five most profitable companies in the world are oil companies. Exxon Mobil just announced over $30 billion in profits last year. It goes on and on and on. So, what`s in the God`s green earth can they say when you guys say, listen, how about just stop giving them subsidies, what`s their big grand argument against that?

BISHOP: Well, their argument is if we take away the subsidies, that people will pay that price at the pump. And it is a nonsensical argument. These subsidies have had absolutely no impact on holding down price. These subsidies were in existence. When oil was $70 a barrel, when oil was $80 a barrel, when oil was $90 a barrel, when it was as high as $147 a barrel, and it`s had no impact on driving down price. So, we have no reason to think that taking away the subsidies will have any impact on price. And also, we all know that oil is priced globally, and the factors that go into the pricing of oil are many that include, in some cases supply and demand, in many cases speculation, in many cases geopolitical factors, in some cases fear, in many cases the value of the dollar, none of the pricing has to do with subsidies.

UYGUR: Yes, it is absolutely outrageous. Even President Bush said, hey, if it goes over $50 a barrel, we shouldn`t give subsidies and we`re over 100 now, and they`re still holding on to them. Because that`s where they work for it. Representative Tim Bishop, you got the right legislation, I wish you luck with it. Thank you for calling us tonight.

BISHOP: I hope we can get it passed. Thank you.

About William Brighenti

William Brighenti is a Certified Public Accountant, Certified QuickBooks ProAdvisor, and Certified Business Valuation Analyst. Bill began his career in public accounting in 1979. Since then he has worked at various public accounting firms throughout Connecticut. Bill received a Master of Science in Professional Accounting degree from the University of Hartford, after attending the University of Connecticut and Central Connecticut State University for his Bachelor of Arts and Master of Arts degrees. He subsequently attended Purdue University for doctoral studies in Accounting and Quantitative Methods in Business. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals throughout the country as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. In addition to the blog, Accounting and Taxes Simplified, Bill writes a blog, "The Barefoot Accountant", for the Accounting Web, a Sift Media publication.
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4 Responses to GOP – Grand Oil Party. Republicans vote down measure to end tax breaks for big oil companies.

  1. Sheilah Blanco says:

    Those hypocritical dogs

  2. sam 72 says:

    It is simply unfair. Students are coming out of college with huge debt; people are having hard time putting food on the table; old people are paying too much for their medicines; and so on. I am very disappointed by this ‘no’ vote. Last year 5 big Oil companies made almost 142 billion dollars in profit. What if they pay 2 billion dollars in taxes, they will still make 140 billion dollars in profit. Wake up legislators you are there to help general public not to run them over.

    • Hi Sam,

      I wish you were the President or in Congress. I’d vote for you; that’s a platform to support!

      We need to organize and support individuals like Senator Bernie Sanders from Vermont, an Independent, who is fighting governmental fraud and legalized payoffs.

      Thanks for your comment. Keep them coming. We need to wake up America. America is being distracted by wedge issues and nonsense (whether Obama was born in the US). America is being fed lies, that if we do not tax the rich and the corporations, they will create jobs here in the US: they were given tax breaks since Bush became President, and they are creating the jobs in China, India, the Philippines, and Cambodia, where workers are paid as little as 22.5 cents per hour.

      So first we have to wake up all of the American citizens. Then we organize. And then we throw out all those crooked politicians receiving payoffs from the multinational corporations. So please continue to get the word out.

      The Barefoot Accountant

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