Big oil targeted in budget fight
May 11th, 2011
12:43 PM ET
12 years ago

Big oil targeted in budget fight

Washington (CNN) - Senate Democrats planned to open debate Wednesday on legislation to cut $21 billion in subsidies from big oil companies and use the money to reduce the federal debt - a move designed to put Republicans on the defensive and capitalize on public anger over rising gas prices.

The bill has virtually no chance of winning congressional approval. Analysts believe, however, that Democrats will try to use the issue to their political advantage in both the run-up to the 2012 elections and the ongoing fight to increase to the amount of money the federal government is allowed to borrow before Washington defaults on its financial obligations.


Filed under: Budget • Senate Democrats
soundoff (11 Responses)
  1. Thai

    I would like to hear the Republicans' reasoning for subsidizing big oil.

    May 11, 2011 12:46 pm at 12:46 pm |
  2. Democrat Class Warfare - Destroying the economy, destroying the country

    VOTE FOR IT REPUBLICANS!!! But tack on the removal of all funding for NPR, Planned Parenthood, GM, Fannie Mae, Freddie Mac, etc. All this useless wasteful spending MUST GO!!!

    May 11, 2011 12:48 pm at 12:48 pm |
  3. Rudy NYC

    That's symbolic, small change, Mr. Reid. Go for the throat. Define tax cuts for what they are, spending. If you are serious about spending cuts, then go after the tax cuts. The prevailing greed of the market will keep the economy on its' recovery. The biggest danger to the economy are oil and gas prices, which are controlled by the commodity markets.

    Call their bluff. Ever play poker, Mr. Reid? Come one, you're from Nevada. I'm sure are familiar with bluffing when you play games like poker. The most basic rule in bluffing is simple. Make a bluff when your opponent can least afford to bluff. I would call. They cannot afford to bluff when the American people overwhelmingly want to see tax increases.

    May 11, 2011 12:51 pm at 12:51 pm |
  4. Democrat Class Warfare - Destroying the economy, destroying the country

    They cannot afford to bluff when the American people overwhelmingly want to see tax increases.
    What America do YOU live in??? Oh yeah, the 50% of America that doesn't pay taxes but feels fully empowered to demand that everybody else pay them.

    May 11, 2011 01:00 pm at 1:00 pm |
  5. Democrat Class Warfare - Destroying the economy, destroying the country

    Define tax cuts for what they are, spending
    Education time for liberal drop outs. Taxes are a confiscation of somebody elses welath and hard earned money by the government. Spending is the waste of that confiscated money on useless liberal programs while neglecting essential duties such as border security.

    May 11, 2011 01:04 pm at 1:04 pm |
  6. Rudy NYC

    The Republicans have grossly misjudged the American voters again. How can they be serious about spending cuts when they refuse to put tax cuts on the table?

    Mr. Reid, do not allow yourself to be drawn into the argument that Democrats have taken Medicare/Medicaid off the table. The American people did that loudly and clearly to the GOTP during the past Congressional recess. The American people also spoke louldy and clearly to the GOTP representatives what they want done, and how it should be done.

    Take up their call, Mr. Reid. The American people want to see these Bush Tax Cuts removed for the wealthy. That alone would reduce spending by $4T over a decade. Those cuts have added at least that much to our deficit since 2002.

    May 11, 2011 01:07 pm at 1:07 pm |
  7. Mikey

    @ Class Warfare – There you go again. The President saved GM and with it, the entire U.S. auto industry, which would have fallen when the supply chain collapsed.

    No Fannie and no Freddie = higher borrowing costs = less home affordability = less house for your money

    No planned parenthood = more healthcare costs or poor women placed on the system, which we all pay for anyway
    Also = less birth control = more poverty and more children that are dependant on the State.

    NPR and Planned Parenthood are rounding error in the Federal budget. They represent an ultra conservative hit list parading as fiscal repsonsibilty.

    We need to cut spending in many areas – most of all, in defense. We need to deal with long term structural issues on social security, medicare and medicade AND we need to bring taxation levels back up to where they were in the 80's or 90's, when we had a booming economy.

    May 11, 2011 01:08 pm at 1:08 pm |
  8. obama victim

    yes...let's cut them out....and then when the oil companies raise prices to make up the the difference, we can all pay more at the pump....won't that be special?? what are you people using for brains??

    May 11, 2011 01:17 pm at 1:17 pm |
  9. Squigman

    Haven't got a thing wrong with every one paying their fair share. One thing I've noticed, no one from the senate, or congress targets themselve. Set a good example for the people, and make sure both house and senate are paying their fair share. Regardless of party, it seems they always fly under the radar.

    May 11, 2011 01:28 pm at 1:28 pm |
  10. New Age Independant

    The article, as usual from CNN, fails to mention why the subsidies were originally initiated. Without knowing that info, it's hard to say for sure if it should be withdrawn. I'd agree in principle that the oil companies wouldn't be likely candidates for free cash. Unfortunately, Democrats are trying to single out select companies which will fail legally. It's also just another attempt to deflect the real problem of out of control spending.

    May 11, 2011 01:35 pm at 1:35 pm |
  11. gt

    i bet they would trade that for less regulations ....

    May 11, 2011 02:16 pm at 2:16 pm |