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Where are the Bush Tax Cuts going? I am sure you may have noticed the soaring gas prices recently. Nobody is immune to the harm these prices are causing the economy. The national average is hovering around $4/gal, and a poll held by the Washington Post shows that 71% of American’s are experiencing financial hardships due to high prices. All this while oil companies are reaching historic profit levels and are receiving $4B annually in tax payer funded subsidies…subsidies, according to the Wall Street Journal, that 74% of American’s want eliminated.
Recently, Speaker of the House John Boehner (R-OH) expressed his concern to ABC News about the rising gas prices by addressing the $4B a year in subsidies that tax payers give big oil. He stated that it was “…something that we ought to be looking at…they ought to pay their fair share.” So why is Boehner backpedaling now that democrats want to end the $4B in tax breaks and put the issue to vote? And more importantly, why does big oil even need these subsidies?
Former Republican National Committee chairman and Boehner spokesman Michael Steele stated, “The Speaker wants to increase the supply of American energy to lower gas prices and create millions of American jobs. Raising taxes will not do that." Of course we all know that this isn’t true. Subsidizing the rich hasn’t created jobs recently, and over a 25 year period, we see that it actually causes debt. Moreover, this isn’t an issue of raising taxes but eliminating tax subsidies.
More after the break...