House Votes to Repeal Oil Company Tax Breaks

Recently the House voted 236-182 (Jack voting NO) to repeal two tax breaks for oil companies, saving taxpayers almost $18 billion over the next ten years from the five largest oil companies. The tax breaks are currently designed to help the companies compete in the global market, and to encourage oil exploration and extraction outside the United States. Besides repealing the tax breaks, the bill also invests money in alternative energy. I support this legislation based on record oil industry profits in the last several years. Tax breaks are not necessary for these companies. In fact, in 2007 Exxon Mobil Corp. posted the largest annual profit by a U.S. company, $40.6 billion. Exxon also set a U.S. record for the biggest quarterly profit, posting net income of $11.7 billion for the final three months of 2007, beating its own mark of $10.71 billion in the fourth quarter of 2005. The previous record for annual profit was $39.5 billion, which Exxon Mobil had in 2006. I have no problem with companies making profits, or with legislating PROPER business tax incentives, but when gas prices are so high that Americans struggle to fill their tanks, government-subsidized 'record profits' are just wrong.