[Congressional Record Volume 156, Number 100 (Wednesday, June 30, 2010)]
[Extensions of Remarks]
[Page E1252]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             INTRODUCING THE END BIG OIL TAX SUBSIDIES ACT

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                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                        Wednesday, June 30, 2010

  Mr. BLUMENAUER. Madam Speaker, today I rise to introduce the End Big 
Oil Tax Subsidies Act, legislation that will end the expensive and 
unnecessary subsidies that the American people provide to the world's 
largest and most profitable companies. The legislation leaves untouched 
the tax treatment for small, independent companies.
  Every year, Americans file their tax forms, contributing to our 
nation's defense, education, and infrastructure. Yet the biggest oil 
companies retain staggering tax benefits that shield these companies 
from their tax burdens. These benefits may have made sense decades ago 
for a fledgling industry, but today there is no need to protect the 
largest and most profitable companies in the world from burdens that 
every other taxpayer faces.
  In 2008, the top five oil companies made a combined profit of $100 
billion. In 2009, ExxonMobil hit an all-time record $45.2 billion in 
profits, yet paid no U.S. federal income taxes. In fact, they received 
a $156 million tax refund. To be sure, these companies face other tax 
liabilities. But the cornerstone of financing the federal government is 
the federal income tax and here Big Oil can largely offset its income 
with these tax subsidies. It is patently unfair that ordinary Americans 
must pay into a system that subsidizes this mature industry.
  At time when we are working to rebuild our economy and curb the 
deficit, America cannot and should not subsidize the most profitable 
corporations in the world. President Obama's FY 2011 Budget proposed 
ending many of these tax breaks, which could reduce the deficit and 
fund national priorities from education to clean energy. At the recent 
G-20 Summit in Pittsburgh, the administration agreed with the other G-
20 nations to eliminate these subsidies.
  The unique tax breaks enjoyed by the oil industry provide unnecessary 
and harmful incentives for exploration, drilling, and refining 
activities that keep America anchored to oil, a threat to our 
environment and our national security. The United States consumes 25 
percent of the world's oil but has less than 3 percent of the proven 
reserves.
  By continuing to artificially subsidize fossil fuels, we undermine 
investments that will guarantee our energy dependence. It is time for 
our country to shift gears, end the billion dollar carve-outs for the 
largest oil companies, and start investing our limited taxpayer dollars 
in America's future rather than America's past.

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