Subsidizing hugely profitable companies is a good idea why again?
President Obama is leading the charge on ending taxpayer subsidies to the massively profitable oil companies. This week, the Senate voted in a procedural vote on Senate bill 2204, the Repeal Big Oil Subsidies Act, to do just that. The vote was a lopsided 92-4 but that’s not because Senate Republicans actually want to end these subsidies. It’s because, for some reason, they think this is a winning issue for them and that it will go down in flames in the end while making the Obama administration look bad in light of rising gas prices.
The Obama administration smartly disagrees. They want to have this national conversation. Why? Because rising gas prices are tracking corporate profits quite nicely as it turns out. In other words, the only ones taking a hit on the rising cost of oil are consumers, not the oil companies.