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Hello, everyone. Do you really think that the escalating gas and oil prices are directly linked to the tax subsidies accorded to the big oil companies? Then if really these subsidies are really of significant role then the oil companies are not supposed to recording huge profits at the expense of their consumers. For instance, the five big American oil companies such as the BP, Shell, Exxon, Chevron as well as ConocoPhillips in the first-quarter of this year they reported a combined $32.3 billion earnings, approximately 50 percent above last year. This situation likely results to the question “how do you really feel about the money that we paid to the gas station/oil companies while at the same time they are subsidized by your tax?”.
Moreover, despite these prices being influenced by multiple factors it is also apparent that the subsidies allocated to the major companies have so far not yielded any fruits towards bringing down the already skyrocketed prices of oil and gases. However, the cutting of these tax breaks would result to the payment of the nation’s budget.
In addition, the cut of these subsidies may hinder future economic growth especially at this time when the economy had already started to recover. Therefore, these subsidies should be equally applied as well as ending the tax loopholes. Moreover, in order for the taxing to be fair it should be subjected to all participants and not selective.
Moreover, increased taxes will also have it consequences such as continued high prices of gas and oil. Also, reduction in employment rates due to reduced investment by these oil companies as well as decreased competitiveness in overseas markets.
In conclusion, when all these factors are considered and the possible consequences of selectively taxing such oil companies are the prices we are paying for the gas and oil warranted considering the huge profits made by these companies?.
Works Cited
Barret, Ted, GOP knocks democratic proposal to cut oil companies tax breaks. Retrieved on July 20, 2011 from http://politicalticker.blogs.cnn.com/2011/02/08/gop-knocks-democratic-proposal-to-cut-oil-company-tax-breaks/
Berger, Judson, North Dakota Oil Tax Revenue Breaks $100M Mark in March as Industry Booms. Retrieved on July 20, 2011 from http://www.foxnews.com/politics/2011/05/09/north-dakota-oil-taxes-break-100m-mark-march-industry-booms/
Hessenflow, Robert, Letter: A lot of talk from bureaucrats, but not much action. Retrieved on July 20, 2011 from http://www.leavenworthtimes.com/opinions/letters_to_the_editor/x920796344/Letter-A-lot-of-talk-from-bureaucrats-but-not-much-action
Obama proposes larger oil cleanup fund, tax on oil companies. Retrieved on July 20, 2011 from http://articles.cnn.com/2010-05-12/us/oil.spill.main_1_bp-spill-oil-companies?_s=PM:US
Oil CEO’s Defend Profits, Tax Breaks at Heated Senate Hearing. Retrieved on July 20, 2011 from http://www.foxnews.com/politics/2011/05/12/oil-ceos-head-hill-grilling-senate-dems/
Riley, Charles, Big oil execs hit back on tax proposal. Retrieved on July 20, 2011 from http://money.cnn.com/2011/05/11/news/economy/oil_tax_hearing/index.htm
“The Skunks at the Garden Party”: Dissenting Senate Dems Denounce Their Party’s New Big Oil Bill as “a Gimmick” & “Laughable”. Retrieved on July 20, 2011 from http://blogs.abcnews.com/thenote/2011/05/the-skunks-at-the-garden-party-dissenting-senate-dems-denounce-their-partys-new-big-oil-bill-as-a-gi.html
