Oil Lobby Whines Because President Obama Wants Them To Pay Taxes

President Obama has proposed to lower the taxes on corporations, including the Big Oil corporations, from a 35% tax rate to a rate in the upper twenties. To pay for this tax cut, the president has proposed to eliminate some of the tax loopholes and subsidies currently used by corporations to avoid paying taxes -- loopholes and subsidies that allow some corporations to pay no taxes at all (even though they are making billions of dollars in profits).

I don't have a problem with the president's proposal. I would rather see these corporations pay a 27% or 28% tax rate than nothing at all. But the Big Oil companies are whining loudly, because the president is asking that about $4 billion in loopholes and subsidies be eliminated for the oil industry. And there is no reason at all why these should not be eliminated. The loopholes and subsidies are meant to help industries that are necessary to the health of the nation, but are struggling to survive.

The Big Oil companies are certainly not struggling to survive. While ordinary Americans are struggling in this recession, the Big Oil companies are recording massive and record-breaking profits -- and have been throughout the recession. There is absolutely no reason for them to not pay their fair share of taxes. In fact, the president is not even taking away all of their subsidies. Last year, the Big Oil companies enjoyed over $7 billion in subsidies. The president is only asking that $4 billion be eliminated. Personally, I'd like to see all of the oil company subsidies eliminated.

Jack Gerard, the president of the American Petroleum Institute (the lobbying arm of Big Oil), thinks President Obama is being unfair to his industry. First, he claimed that the oil companies receive no subsidies. That's an outrageous lie. Getting $7 billion in tax breaks is a long way from no subsidies. Then he said the president's tax cut plan was "discriminating" against Big Oil. That's even more ridiculous. Asking any person or company to pay their fair share of taxes when they are making billions of dollars in profits is not discrimination -- it is just common sense.

I find it impossible to feel sorry for the Big Oil companies. They certainly have no compassion for the consumer, and happily raise gas prices even though they are already making record profits. It's time for them to pay their taxes (just like workers and small businesses have to do). They've had a free ride on the backs of consumers and taxpayers for far too long. It needs to end.