Obama: Congress must ax oil industry tax breaks as part of debt deal

President Barack Obama is ramping up pressure on Republicans to slash tax breaks for oil and gas companies as part of a deal to trim the federal deficit.

In a news conference in the White House’s East Room, Obama today said the “tough choices” facing lawmakers boil down to axing those oil industry tax breaks or slashing such federal programs as research grants and scholarship programs.

“If we choose to keep tax breaks for oil and gas companies that are making hundreds of billions of dollars, then that means we’ve got to cut some kids off from getting a college scholarship, that means we’ve got to stop funding grants for medical research (and) that means that food safety may be compromised,” Obama said.

Democrats and Republicans are at odds over how to trim $4 trillion as part of a legislative package that also would raise the current $14.3 trillion debt ceiling.

Democrats and the Obama administration have insisted on getting rid of some tax incentives to raise money. In addition to the credits and incentives long used by oil and gas producers, Democrats have targeted tax breaks enjoyed by corporate jet owners and hedge fund managers.

Republican leaders who were negotiating the debt package, meanwhile, have insisted on spending cuts alone and flatly rejected any idea of raising taxes as part of the deal.

Obama said Republicans’ position isn’t “sustainable.”

“You can’t reduce the deficit to the levels that it needs to be reduced without having some revenue in the mix,” Obama said. “And the revenue we’re talking about isn’t coming out of the pockets of middle-class families that are struggling; it’s coming out of folks who are doing extraordinarily well and who are enjoying the lowest tax rates since before I was born.”

Obama added:

“Before we ask our seniors to pay more for health care, before we cut our children’s education, before we sacrifice our commitment to the research and innovation that will help create more jobs in the economy, I think it’s only fair to ask an oil company or a corporate jet owner that has done so well to give up that tax break that no other business enjoys.”

The targeted tax breaks include a domestic manufacturing deduction that is widely available to other industries and a deduction for intangible drilling costs, such as the cost of repairs, site preparation and hauling supplies. The administration also has taken aim at a percentage depletion deduction that allows energy companies and royalty owners to deduct a percentage of the revenue from the sale of oil or gas extracted from their land.

Oil and gas industry leaders reject any notion that the targeted tax breaks are unique to them and insist that there are parallels in the tax code for other companies.

“Raising taxes on an industry that already contributes more than $86 million every day to the federal government takes us in the wrong direction,” said Jack Gerard, president of the American Petroleum Institute. “It could put American jobs at risk, decrease oil and natural gas production, harm millions of retirees who rely on income from energy companies and actually reduce revenue to the government over time.”

Some former Republican lawmakers and rank-and-file GOP members have said they would support cutting tax breaks that target specific industries. But support for those changes could hinge on whether they are included as part of a broader planned rewrite of the tax code that also lowers the overall tax rate.

Lawmakers delivered a big signal that at least some energy subsidies should be on the table earlier this month, when the Senate voted to repeal a 45-cent-per-gallon excise tax credit for ethanol blenders.

108 Comments

  1. rrr

    we’d be better off if the ax fell on obama

    #1
  2. TransAmer99

    No, Zero, the axe (note to editors – at least spell it right) must fall on your administration. 07-Nov-2012 cannot get here soon enough!

    #2
  3. dcsports

    How did such a clueless person become elected president??

    #3
  4. olddispatcher

    Bush called for the same cuts in 2005. He said that with oil at $50 a bbl. there was no reason to continue these tax breaks for oil companies.

    If Congress had listened to Bush then would we be in the situation we are in today?

    Better late than never.

    #4
  5. RightWingDino

    The ax must fall on Obama!!

    #5
  6. adam

    Is he trying to get the entire oil and gas industry to leave the country? Does he know how much tax revenue the government would lose if even one major company stopped drilling in the US?

    #6
  7. NoWhining

    Why continue to play to his special interests and agenda. Cut ALL subsidies and tax breaks. Obama doesn’t have a clue — the emperor has no clothes.
    Stopped in 2010. 2012 time to end this bad experiment in government.

    #7
  8. independent66

    We all know where the ax should fall. Impeach Obama.

    #8
  9. txloanguy

    Why bother? Obama stops drilling every chance he gets. That’s a pretty heavy tax.

    #9
  10. disheviled1

    ” Obama said. “Before we ask our seniors to pay more for health care”
    Who is he kidding?Health care is going to sky rocket when his program kicks in.Are tax increases the only thing the Democrats have?

    #10
  11. electric rodeo

    apparently this idiot doesn’t realize this will cost people jobs and that America still exists because of the oil industry. Obama is abot as dumb as they come !!

    #11
  12. Jerry Martin
    #12
  13. ss396

    I’ll say one thing for Obama, he’s predictable and consistent in his hatred of our primary energy providers.

    #13
  14. Dr Sue

    The thing about buzzwords like “wealthy” is it’s all in who you are really referring to.
    HRH Obama’s definition is all the small businesses out there, the core of any recovery, who can’t recover, if they are taxed out of existence.
    Besides, the debt total now exceeds our entire GDP, so no amount, that’s NO AMOUNT, of tax can fix the problem. 100% of all our paychecks – everyone in the country! can’t pay the entitlements due by 2020.
    Notably missing from HRH speech is anything resembling the huge spending cuts necessary to eliminate the debt.
    The US is long overdue for a massive tax, and entitlements, overhaul, and much of that has to do with our aging population. Folks in the US simply don’t want to face the ugly, brutal reality that we have not saved enough, or planned enough, for the more than 100 million people who will soon be well past retirement, and working. Worse, American companies have shipped millions of jobs overseas. The sad fact is that absolutely everyone is to blame – the corporations who shipped out the jobs, the middle class who failed to plan and save, the liberals who bought off on utopian lies by cynical politicians, and conservatives who got too greedy and thought the stock market only went up -up -up.
    It’s well past time we faced the bitter, brutal realities that we are individually responsible for our own lives, and retirement. That the government is not responsible for our health care and can not provide it. That there is a lot more to running a company than simply trying to manipulate “shareholder value”. And that less government means less expense and more jobs and growth for everyone. And finally whenever a politician promises to solve your problems for you, he is most definitely lying and trying to rob you and your future.
    We have truly mortgaged our future, squandered our welath, all in the name of “change” and “let someone else pay for my problems”.
    It is imperative, right now, to slash every single element of government spending – no exceptions, no politics, and no special interest. If we don’t we are facing ruin – total and complete. At the current rate of entitlements, by 2020, social security alone will exceed our entire national gross domestic product. The GAO actuaries have been screaming this for 30+ years, congress has ignored it, and the clock is running out. The crises is upon us and the spending, and every government entitlement, must be slashed. Now.
    Now that’s change that will work.

    #14
  15. fbtSL

    Congress will never REDUCE the taxes on the big oil companies because that is where their campaign funds come from and their lobyists show up with big bags of cash and tell the congress how to vote. The President is just dreaming if he thinks he can get Congress to act against their money supply.

    #15
  16. chiefdecoy

    For what?
    My company has located it’s main office overseas, and does not currently even operate in U.S. waters. Unless he is wanting to further punish those who still attempt to operate here (or drive the remaining company’s out), I don’t see how this will actually increase any revenue…..
    What a schmuck!

    #16
  17. Hope for Change in 2012 G'Bye BHO

    If “Barry” had not lined the pockets of give-a-way programs comparable to ACORN and not given “Stimulus Money” with no strings attached, then the deficit would not be at crisis levels. How stupid is he and his clown “czars” (how appropriate for a socialist agenda). The WORST POTUS ever!! Where’s Monica Lewinsky when we need her most?

    #17
  18. BOB

    I am a little confused Obama approvs of the tax credit for corportate jets but then just now in his speech rants on how we should raie taxes on people that fly around in corporate jets. Can someone please explain this logic to me?

    re-elect Obama for best communism

    SOCIALISTS AND COMMUNISTS ADVISING OR APPOINTED BY OBAMA. Look at his friends and associates.
    http://www.commieblaster.com/obama.html/index
    http://www.nachumlist.com/Socialists.htm
    http://obamaism.blogspot.com/
    ITS IN THE CARDS
    http://www.obama52.com/backup.htm
    IS HE OR ISN’T HE A COMMUNIST YOU BE THE JUDGE
    http://www.jesus-is-savior.com/Evils%20in%20Government/Communism/barack_obama.htm
    http://therealbarackobama.wordpress.com/2009/09/23/loudon-obamas-socialist-appointees-where-is-the-spotlight/
    http://www.aim.org/aim-column/obamas-communist-mentor/

    #18
  19. Kwc

    When are the liberals going to start talking about bringing the ax down on their spending???

    #19
  20. James Maxwell

    At best Obama is a corruptor of free enterprise and is bent upon the destruction of power producers in America. He raided the Strategic
    Reserves to try and buy votes for 2012. He still has not Energy policy
    nor Finanaical police presented to the American people. At best it will
    be like his Health care program. You won’t know how bad you have been
    had until he gets it passed. The you will discoer he has already pushed
    you over the cliff. The sooner Obama and his regeim of miscrents and czars are gone the sooner we can start the recovery of America and lessen of the debt he amassed.

    #20
  21. meetwoodflac

    Buh Bye Barack!

    #21
  22. Govchance

    If you are going to take them from the oil companies, they should also be taken from the ethanol producers and the green enegry companies.

    #22
  23. wantingbalance

    Go for it. Make every business stand on its own feet. But between rounds of golf, ask your self a couple of questions. Would you rather provide subsidies (your tax dollars and your future debt) or would you rather pay higher prices at the pump, pay higher prices for durable goods and food items and pay higher prices for utilities all while NOT gaining energy independence. That’s a rather large hammer that oil holds over our heads and that’s why they call it “big.” Since Obama has never held a real job nor met a payroll, he has no concept of the cause/reaction issues associated with what our central government does.

    #23
  24. Doug Loy

    We need to cut foreign aid and take care of our own 1st.

    The OECD calculated that (in 2008) the US spent about $25 billion in foreign aid per year. How much have we spent in 2011?

    The U.S. tax payer will continue to fund the world, pay for illegal immigrants and other wasteful spending at the hands of our own government.

    What good does it do to save the world while we continue down a path that leads to implosion? You won’t see any foreign countries coming to our rescue!

    Read more: http://wiki.answers.com/Q/How_much_foreign_aid_does_the_US_Government_give_away#ixzz1QgceAm91

    #24
  25. Mike

    Cue the “that socialist is killing our economy” comments.

    #25
  26. Irish_One

    Cue the mass exodus.

    #26
  27. Art Vandeley

    Obama is the biggest threat to the US economy with his ideas to raise taxes that will kill jobs, businesses and the economy. Thank God he does not have control of congress. This is just proof that the liberal progressives spending spree must stop now.

    #27
  28. liven-n-iraq

    First, how about taking back the taxpayer dollars that Obama gave to unions ($60B). Than we can talk about taxes.

    #28
  29. Billy

    Get this nut job out of the white house before he completely strangles the domestic o&g industry. Obama has ALWAYS been against oil so its not that big of a surprise, but he is dilusional if he thinks this will happen. Funny how the most vocal anti-energy politicians hail from non-producing states.

    How do we get out of debt? It’s finance 101…quit spending money on non-essential items.

    #29
  30. Lelouch

    Make your choice America:
    Let Oil corporations keep on having billionaire government funded incomes or stop giving higher education to our kids who just by being in Universities means that they are striving to make a better life.

    The choice its easy.

    #30
  31. J.

    Is “ax” a verb?

    Let him ramp, let his rage, with only 31% approval who cares what he says or what he thinks, or IF he thinks.

    #31
  32. ustserv

    This is a broken record. Our messiah will drag his feet until the last minute hoping that the opposition will blink. When the opposition does not blink he will declare another “national crisis” and urge the opposition to take steps to resolve it.

    2012 November can not come soon enough!

    #32
  33. Lou

    What a doofus. he flies to play golf. That’s a lot of fuel…

    Maybe he (and elites) want all the fuels to themselves while we “little people” suffers.

    #33
  34. dec

    We MUST address run away spending before any type of tax incentive cuts on any big business or tax increases on the masses can ever be considered. This is exactly the failure in the federal legislature – not recognizing that there is a much larger SPENDING problem than there is an income problem.

    This man does not look very “presidential” to me when the root cause of the budget crisis isn’t even a consideration. You cannot continue to treat cancer with an aspirin and tell us it’s a cure.

    #34
  35. MrProgressive

    What a bunch of factless posts. Fact: Under the Obama administration domestic production is the highest in 10 years. Fact: Former President George W. Bush wanted to end the oil subsidies when oil was $50/bbl. Fact: George W. Bush doubled the national debt in his first 6 years, that’s why we’ve got the shortfalls in the budget. Fact: Neither cuts nor tax increases alone will reduce the deficit, both are necessary.

    #35
  36. TXSFRED

    Haven’t you all seen that commercial where the Viking says: ” read my lips! NO NEW AXES!”
    .
    Come 2012… we’re waiting.
    .
    I always admire the leftists so… so I want to use one of their stupid comments when they really have nothing worth saying….”Cue the leftist Useful idiots’ and their unqualified comments…” Hey! that IS fun. :-})

    #36
  37. tejanoneck

    a fair and consistent tax system would be best. A corp shouldn’t pay more or less than the corp down street. A man making 50 k shouldn’t pay more or less than the 50 k man down the street. A small business shouldn’t pay more or less than one down the street. One shouldn’t get breaks because they belong to a particular group.

    #37
  38. OilPatch41

    Leloch, how is a company that finds, extracts, refines and markets oil and gas having government funded incomes. The only income the government has is from taxing what others produce. The tax deductions (not subsidies as being reported) are common across many industries not just the oil and gas industry. If congress or the president were to get their way this type of tax discrimination will eventually end up in the supreme court. Look at the facts, 2011 1.4 trillion deficit, cuts maybe 3-4 trillion over 10 years, still running over a trillion in debt every year. Something drastic has to be done across the board, and that means everything from defense to SS and Medicare. No sacred cows for anyone no matter how much they contribute to your campaign. Funny how the constitution doesn’t specify any of the 480 government agencies and departments that now exist, it only specifies the president, congress, and supreme court. Everything else has been created by politicians for the purpose of government control. Not always for the betterment of the citizens.

    #38
  39. Mark from Louisiana

    When the government tries to pick winners (green energy grants and loans) and losers (American oil companies) EVERYONE loses. If he had any brains he would say we are going to redo the tax code, no company will get loopholes, subsidies, etc. All businesses would pay a flat rate tax with no deductions but with a lower tax rate. No subsidies to American companies to build factories in China to make solar panels. No tax credit for buying a hybrid car. No subsidies to General Electric to make the federally mandated light bulbs…in China.

    #39
  40. ustserv

    Lelouch

    Gee: I do not remember the government “giving me a higher education” My recollection is that I worked for it and my parents helped pay the tuition. There are no free lunches. That includes government sponored medical research and paid for higher education. Show me in the constitution of the United States where the government is obligated to provide free higher education and perform medical research.

    Look at the splendid job that the Department of Education has done to improve secondary education. The results have been pitiful. As for medical research, how about 3.5 million to study a monkey on drugs while she is menstrating? Give me a break! This is your government at work!

    #40
  41. vjames

    what a moron, gas is going up if that occurs

    #41
  42. OBAMA IS A MORON

    #42
  43. w00t

    How about a FLAT TAX Obama? Oh, I forgot…your constituents don’t pay taxes!!!

    #43
  44. DandyDon_dd

    Obama is not stupid or really that ignorant, he’s a con man.
    He knows his base supports are really stupid or ignorant and do not realize that any tax increases given the Energy Companies will be passed down to the consumer.

    #44
  45. Captain Cook

    axe on you bho!

    #45
  46. Captain Cook

    Things were starting to pick up again until you opened your big mouth again. Shut it and hide until 2012

    #46
  47. Mississippi Boy

    I think the tax subsidies given to oil companies is only a drop in the bucket compared to the deficit as a whole. If you want to trim the deficit, spend less than what you make. It’s simply. F*uck all of these case studies, public debates, debt analysis, bullsh*t that supposed to come from supposedly educated ivy league schools. America being reckless is how we got here in the first place. Most of the crap we spend money on we don’t need. For example, we spent of all of this money of these dumb azz wars only to make individuals wealthy and the country as a whole poorer. It’s time for the US government to get their heads out of the sand and start making tougher decisions. I backed Obama and I will always back Obama. However, I hate most of his policies. I liked Bush personally but didn’t like his policies either. But the record, I can’t stand most politicians because they sell the citizens a pipe dream but cannot provide us a pipe to smoke it because the pipe maker is calling the shots. The truth is that America is going down unless we the rise up and fight everything. But it will take a leader who has the testicular fortitude to make a difference

    #47
  48. InformedCitizen

    Fact: Obama had little to nothing to do with the recent emergence of domestic shale gas/oil plays. The utilizaton of existing technology enabled cost effective development of the shale resources that contributed to said spike in domestic prodution.
    Fact: Obama did play a significant role in the Gulf of Mexico moratorium.
    Fact: Obama did authorize the release of SPR crude when the $/bbl is in current decline.

    #48
  49. liven-n-iraq

    The tax cuts will generate about $3-4B per year. This is a drop in the bucket of a $14T debt. It’s a side show. Cut the spending or get voted out.

    #49
  50. jimmydwight

    From what I’m reading here is: Keep the oil companies rich (while they gough you with high prices)and to hell with the elderly that have worked hard all their lives and paid their taxes and social security insurance for Decades. Pitiful!

    #50
  51. hotline_Harry

    The ax must fall on the obama administration. he is the enemy of we the people!

    #51
  52. BB-35

    Translation: End the tax breaks so I can waste more money. No thanks!

    #52
  53. TexanRon

    Remember this: Corporations do NOT pay taxes. The customers of the corporations pay the taxes. If Obama raises taxes on Exxon or Acme Mfg, then Exxon and Acme Mfg will raise the prices to offset the taxes. Who pays for that? Shazam! You do.

    #53
  54. Juan Carlos

    Only if we cut tax breaks for the Unions!!!
    ,
    I guess the Dumbocrats are too stupid to realize that the profits for the oil companies translate into thousands and thousands of jobs in a growth industry.
    .
    And look at your 401k’s. Career govenrment wheenies collect a pension on retirement that comes from tax dollars. Those of us who actually work have to rely on our 401k’s. The oil companies are one of the few market sectors that have kept our recession losses from exceeding 80%.
    ,
    Again, liberals, too stupid to do anything but follow like sheep, are continuing to nod their heads to anything the socialist-in-chief is saying.

    #54
  55. CarlNB

    The oil companies are the only ones that can solve our high cost energy problem. The government should be doing all it can to promote DRILLING, DRILLING and more DRILLING. We need many, many more oil wells that are not in the middle east. Do NOTHING that would make oil companies short of cash. They need the money and the places to drill.

    #55
  56. about that

    I just cant understand why the Conservatives disagree with helping the country absorb debt. Part of the definition of their very name Conservative: moderate , responsible, financially prudent . . . if we are in debt we do not need to be given special tax breaks. As you can see nothing has helped the economy since they were renewed. All you conservative types said companies would start hiring if they were allowed to continue.

    Prudent principles say we pay our debts, cut spending and increase taxes to get out of trouble. Bush and his Neo-Con cronies put us $3.7B in the hole with these 2 wars and we need to be RESPONSIBLE – NOW!

    #56
  57. poopdeck

    Hey jimmyd,
    You are a pretty smart person. So you want to levy a net tax increase on the oil companies who are already gouging us, I suppose ,since you are so smart and all, that you think that they will magically reduce prices in celebration of paying more taxes?

    #57
  58. We need to send the clueless wonder a pink slip come 2012.

    #58
  59. bob

    I agree with the President. Congress needs to get busy. They are, and have been, the culprit and cause of our deficits. The President and his predecessors could not spend a penny without the approval of Congress. Congress made the mess, Congress will need to fix it. In this regard, there is no D or R, there is only Congress.

    #59
  60. egomasher

    Did any of you bigots even read the article?

    #60
  61. Paul V

    Come on Nov 2012. Democrats: It is perfectly acceptable to admit you made a mistake once however to do it twice is simply unacceptable. I almost feel sorry for the democrats that they could not find anybody better than this individual. OK we have a black President; democrats should check that off the “To Do List” and find something with signifiance to work on.

    #61
  62. buttercup

    The ax should fall on Obama’s head.

    This scum is killing us.

    #62
  63. rat618

    If it was any other industry you folks would be screaming about the tax breaks (see ethanol for example). But JSC and the oil industry are sacred cows to the masses in Houston…just look at how our Republican elected officials cry about programs in other cities but cutting NASA….no way.

    #63
  64. D_Day

    Truth of the matter is American not congress are the ones that are not willing to cut spending so we can balance our budget. We spend more money on Social Security and Medicare than any thing else. That makes up more than 60 percent of our federal budget. But the old baby boomers didnt adueqately plan for retirement, and we cant continue to take care of our older Americans on the backs of the younger generation.

    #64
  65. independent66

    Obama is at the bottom of this, he and the muslims.

    #65
  66. rat618

    If it was any other industry you folks would be screaming about the tax breaks (see ethanol for example). But JSC and the oil industry are sacred cows to the masses in Houston…just look at how our Republican elected officials cry about programs in other cities but cutting NASA….no way.
    And how much of that $14T debt is the wars that Bush started that are now on the books instead of them being a side expense in Bush’s budgets?

    #66
  67. luckyone

    Yet another example of why you don’t elect a Saul Alinsky Community Organizer to be President. Prepare for higher fuel prices and higher unemployment. Team Obama, working to destroy our energy sector.

    #67
  68. hebolder

    Yep, I used to rent a house from an old rich guy.. his taxes went up the rent went up, the water bill went up the rent went up.

    To JimmyDwight if a copany does not operate with a certain after tax profit margin the cut expenses or raise prices or a little of both. So you decide, more layoffs or higher prices or both.

    #68
  69. Gonzo

    @jimmydwight-right on…bunch of dimwits here…how much spending can you cut people??????? there needs to be additional revenue generation also. tax the rich and big oil also…..

    #69
  70. Dollar

    jimmydwight, you need to be informed to read here, no one is gouging anybody.

    You do not understand how oil is priced.

    So maybe, you should not be judgemental.

    #70
  71. poopdeck

    Mr Progressive,
    You left out one important FACT: Obama has added more to the national debt in just over 2 years than Bush did in 8 years.

    #71
  72. Godiva55

    What a bunch of factless posts.
    Fact: Under the Obama administration domestic production is the lowest in 10 years.
    Fact: Former President George W. Bush wanted to end the oil subsidies when oil was $50/bbl but he wouldn’t now, if he were President, because We The People are going to get hit with much higher oil/gas prices.
    Fact: George W. Bush called for reform 17 times in 2008 but the Dems would not hear of it. Barney Frank, Fannie Mae, Freddie Mac and the Dems forcing banks to make bad loans…that’s why we are bankrupt, broke, finished.
    Fact: Neither cuts nor tax increases will reduce the deficit, both are unnecessary.

    When oil/gas companies don’t get their tax break, they will raise the price of oil/gas.

    WE will be paying for these tax breaks ending.

    #72
  73. AstonMartin

    This reminds me of the old Aggie joke about the Aggie who couldn’t find a flat rock to straighten a nail out on so he got creative and decided to use the next best thing he found – his hand.

    Is Obama really so dense he thinks his proposed tax hike on oil companies – or ANY companies, for that matter – will be borne by the oil companies? When consumers see the price at the pump suddenly jump to new highs, I hope they immediately think of our Dear Leader.

    #73
  74. VelvetRob

    Tax payer money given to an industry = subsidy = socialism. You right-wingers make this point when it is convenient. These companies make tremendous profits and we are supposed to give them our tax dollars? If you really believe that these MULTINATIONAL corporations are going pack up their toys and go somewhere else, then fine. In my opinion, if you are a corporation and don’t pay your fair share, then you do not get access to the U.S. market. Start protecting the U.S. economy and quit passing out tax breaks to people/corporations who will allegedly create jobs. It has been 30 years of supply side economics, where are the jobs?

    #74
  75. Lily

    He won’t stop until America is completely beggared. He is determined to punish us for building the greatest nation in the history of the world. We are the enemy to be crushed and the more attacks he lobs against the private sector the closer he comes to his dream of being leader of the NAU and a third world America as his centerpiece.

    #75
  76. El-P

    Obama could say something against child abuse and the Chronicle would be full of comments from right-wingers with something negative to say.

    #76
  77. Tom

    How many days til this idiot is out of the White House? He is easily the worst President in history……of ANY country!

    #77
  78. JimH

    Let us see the ax fall on all of Obama’s buddies tax breaks, like GE.

    #78
  79. Chuck

    We need this money from the oil companies so the baby mama’s can get their government aid.

    #79
  80. mike

    Obama is a liar and a fool. Does he really believe that corporations pay taxes? All corporations pass those extra costs to the consumer. And those of you who believe the high cost of gasoline is controlled by the oil companies are just as foolish as Obama. But you are the ones he needs for re-election. So he’s glad to play class warfare to look good to you lemmings.
    The problem lies in the spending, not the revenues. Higher taxes NEVER generate the income promised.

    #80
  81. Greenie Spirit

    @jimmydwight: Increased taxes for oil companies = increased prices at the pump. They have a targeted profit margin and will pass this added cost on to the consumer.

    #81
  82. No Name

    I agree, we should all be paying our fair share. So let’s always make sure we tax the illegal aliens that are working in this country illegally and not paying their fair share!

    #82
  83. Diogenes

    “If we choose to keep tax breaks for oil and gas companies that are making hundreds of billions of dollars, then that means we’ve got to cut some kids off from getting a college scholarship, that means we’ve got to stop funding grants for medical research (and) that means that food safety may be compromised,” Obama said.

    TRANSLATION: “I got nuthin’ substantive to offer, so I’ll keep beating the ‘tax-the-rich’ drum and keep trying to be divisive.”

    #83
  84. w00t

    When you squeeze the rich, it’s the poor who feel the pinch.

    #84
  85. Birdie

    Where were all of you people who are now screaming about spending while GWB was spending tens of billions of dollars per month on his (and I say HIS) war in Iraq? Where were you when GWB pushed through the prescription drug plan that is costing billions and not really helping seniors? The Bush administration refused to use the bargaining power of the federal government to bring down the prices of prescription drugs, and he passed the prescription drug plan that is costing the federal government billions. Where is that money going? Into the pockets of the pharmaceutical industry, which benefits from similar or the same tax deductions and credits that the Obama administration is proposing to take away from the oil companies. Normally I support Obama, but this is clearly a political ploy to play on the hatred of oil companies by the American people. If the tax breaks aren’t right for oil companies, why are they OK for Big Pharma and other industries?

    #85
  86. snap1415

    The Mope in Chief wants $5 a gallon gas & will do whatever it takes to get there.

    #86
  87. SaltWaterCroc

    Republicans want this to be a two-tiered system: owners and serfs. They rant about socialism while trying to take us back to the time of the tsars in Russia. Business has too many breaks, the average CEO makes thousands of times more than the average worker, and the Republicans are trying to kill anything that resembles a safety net for workers (Social Security, Medicare, and education). They want to let businesses regulate themselves – just like Massey did when they kept two sets of books to mislead regulators on mine safety. The gap between rich and poor in the US has reached the point where we are worse off than most 3rd world countries. The reason we have massive deficits is simple – the Bush tax cuts. Before, the budget was balanced. Since that time, Republicans went on a massive spending spree (wars, TARP, Medicare Part D) while decreasing the taxes on the wealthy. Eliminate the cuts, balance the budget.

    #87
  88. Tubby the Tuba

    Since the repuglicans won’t allow the taxes for the RICH to be raised, then maybe the democrats can get the gas and oil companies who make a killing off the average American can pay their fair share. Don’t kid yourself, the Politicians, our servants, are highly paid, with bonuses, lifetime health insurance, and lifetime caddilac retirement plans at our expense….making them in the wealthy range to be taxed by the President’s proposal. Unlike the repuglicans, the President is willing to pay the gentle increase in taxes that he proposes. That is what LEADERSHIP is called! About time someone other than the Middle Class bail out the politicians and the wealthy along with the poor!!

    #88
  89. sam

    “How did such a clueless person become elected president??”
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    hahahahahah, that’s the very same thing the “other side” was saying just a few years ago -

    #89
  90. Muttley

    I’ve stated for years that the “wall of separation” that liberals love to tout “between state and church” really needs to be a double high – double wide wall between state and business. No subsidies, no tax breaks, no grants, no “Federal Reserve”, none of it. If businesses can’t stand on their own they should go the way of the dinosaur.

    Oh and to those whining about it “keeps the oil companies rich” should understand those same breaks are available to corporations in the automotive, entertainment, finance, media, manufacturing, technology, and transportation industries. So cut ‘em all or not one. Isn’t it liberal philosophy that dictates that no one is allowed to “discriminate”?

    #90
  91. Realist

    I have a better idea. How about we get rid of the automatic retiremneent and insurance coverage for Politicians that every citizen is required to pay and derives no benefit from.

    #91
  92. Tubby the Tuba

    Apparenetly they are not allowing for veiws contrary to this article to be posted. Very Repuglican. Bush is responsible for 12 billion dollars of the deficet today. Why do ignorant people keep saying it was Obama. Say a lie enough and the people will believe it.

    #92
  93. rgvguy

    This is a very smart move by Obama. Texans are pretty much the only people in America that disagree.

    #93
  94. Funny

    No Jimmydwight, what your reading here is basic financials. If I have personal debt, the idea is not to find a better paying job as my answer, or to get a second job and keep spending the same. The goal is figure out what is essential spending and what isn’t and cut back on that to live within my means. If I still can’t live within my means then I have major issues. The government has to live within their means. Getting more money from companies will just allow them to continue wasteful spending. Pitiful is I had to pay money to get through college and did it on my own by working 3 jobs, but if I’m a minority or fit the demograhic for a free government scholarship then I’m entitled to it? No, you’re not entitled to anything. Do a line by line audit of where all the money goes, eliminate bills that have spending bills piggy backed on, and be responsible. Try getting that in order before saying eliminating tax breaks will fix the problem.

    #94
  95. From a taxpayer point of view there aren’t tax breaks. Obama you’re a liar. Tax breaks are only a mindset by greedy politicians who have their hand in your pocketbook and key to your bank account. There is no such thing as a tax break. It’s either government gouges more or gouges less.

    #95
  96. Josephine1

    There would be no need to raise taxes on the oil industry or any other person or industry if we sent the illegals home and freed ourselves from the multibillion dollar burden they create by use of our welfare, medical care, educational and incarceration systems.

    #96
  97. jjjjjjj

    I wonder what the comments would read if a Republican where in office. And I bet a George Washington that the country would still be in the shape its in right now! Our officials are so polluted with $$ signs its funny.

    #97
  98. Here is an idea for Federal Govt., reduce the programs that provide free rides. Entitlement doesn’t exist, so eliminate the “free money”. The impact on the cost of running the Federal Govt. would be huge, thereby accelerating the debt reduction. Here is another thought, align Congressional benefits with length of service. Lifetime membership to country clubs or other perks should not exist. Think about how much would be saved there!

    #98
  99. john

    @About that

    Our irresposibility has come from thinking we can cure the country’s social ills with a pile of cash and that the government owes its people a living. Corruption in every government program(social security/medicare/medicaid…etc) leads to a loss of cash but no one seems to really want to stop that flow of cash!!

    I agree the wars have cost too much and done too little but they are a small fraction of the real problem we have with our country’s current
    debt load!!

    PS . Increasing taxes by a few billion on the oil companies might be popular but goes nowhere in regards to fixing our debt problem. We have bigger fish to fry.

    #99
  100. If the US would stop trying to be a “Crusades” country and get out of Iraq, Afghanistan, and Lybia, they would have enough money to take care of the country.

    #100
  101. Harry Bennett

    The Reps should counter with real cuts to education and Medicade AND throw in Torte Reform on malpractice

    #101
  102. Maxine

    “The problem with socialism is that eventually you run out of other people’s money”- Margaret Thatcher

    #102
  103. Mark from Louisiana

    If George Soros paid taxes in America would he still tell obama to raise taxes on the rich? He is a naturalized citizen.

    “George Soros has heavily been criticized for avoiding to pay taxes in the United States.[4] Soros moved his headquarters to the tax free Caribbean country of Curacao, which is outside of the supervision of the United States Government. The Netherlands Antilles has repeatedly been cited by the Task Force on Money Laundering of the Organization for Economic Cooperation and Development (OECD) as one of the world’s most important centers for laundering illegal proceeds of the Latin American cocaine and other drug traffic. It is a possession of the Netherlands.”

    #103
  104. Peter

    Why is he not cutting all corporate tax breaks, why just oil? Because he has an agenda that has no relation to our economy or jobs. And to all of you cheering “Yeah, suck on it oil.” just wait until consumer prices go up, because that tax is paid by you. Cheering for this is just saying, “I’d like to pay more gas tax please.” Bunch of suckers.

    #104
  105. chiefdecoy

    Birdie,,,,,it’s universally accepted that Bush was NOT the best President to ever grace us. However, in your stern criticism of him, I find it interesting to see that you neglected to point out that Obama has been more than happy to keep the war ball rolling. Even got a piece of his own unjustified war in Libya. His keeping GITMO open after promises to close it. His extending the dreaded Patriot Act, twice. Where is your criticism? Or, are you simply as one sided as those you critique???

    #105
  106. Indianpaintbrush

    Yet, G.E. gets a pass. Cronyism at its finest!

    #106
  107. Indianpaintbrush

    The amount raised by these cuts over 10 years is small compared to our debt and deficit. This is simply a way for Obama to kill two birds with one stone….. make it look like he is doing something by raising taxes on an industry that the uneducated populace has been brain-washed to hate, and penalizing an industry that does not support his agenda.
    If he really wanted to reduce the debt and deficit, he would cut all tax cuts, subsidies, and credits across the board.

    #107
  108. Indianpaintbrush

    So the oil industry pays $86 million PER DAY to the U.S. government, how much did G.E. pay in a year? That’s right, NOT A DIME!

    #108