Policy: Obama Spent $24 Billion on Energy in 2011
March 12, 2012
Congressional Budget Office says that the government provided $24
tax credits and direct subsidies to the energy industry in 2011. Here’s how it
was divided up:
billion in various tax credits to the fossil fuel industry
to the ethanol industry
to renewable energy and energy efficiency programs
industry that receives about 10 cents of each dollar of incentives the
government provides produces 85% of all the energy to keep America
going. And, yet it
is the industry that Barack Obama
demonizes and wants to punish with higher taxes.
important to understand that the various government incentives do not
in the same form. The
industry takes advantage of tax credits designed to incentivize more
in exploration and production. Most
it is identical to the kind of depreciation and expensing credits
every other business in America.
However, much of the support to ethanol and
green technology is direct
subsidies and grants; the government literally sends them a check.
does the oil and gas industry supply us with the vast majority of the
need, it returns an average of 41% of net income back to the government
taxes and fees amounting to $85 million every day of the year. Meanwhile, the media is
full of stories about
bankrupt and struggling green energy companies that are net “takers”
than “payers” to the Treasury.
growing outrage over soaring gasoline prices, instead of approving the
Pipeline and policies that would increase supplies, Barack Obama has
his attack on oil and gas calling for Congress to “eliminate this oil
giveaway right away.” He
wants to take the additional taxes from oil and gas and further
taxes would of course
increase gas prices even more.
even more paradoxical is that the impact of rising gas prices is
regressive – higher costs disproportionately impact lower income people
already struggling the most in the lagging economy.
Yet, Obama contends it’s the wealthy that he
wants to punish with higher taxes and somehow give lower income folks a
break. He can say
it all he wants, but
his policies produce just the opposite result.
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