Senate Rejects Obama’s Call To End Oil Subsidies

WASHINGTON (CBSMiami) – Just a few hours after President Barack Obama called for the Congress to end the massive subsidies, the U.S. Senate was denied a vote due to a Republican filibuster preventing the bill from getting to the Senate floor.

Florida’s Senators were split with Democrat Bill Nelson voting in favor of ending the subsidies and Republican Marco Rubio voting to let the tax subsidies continue.

Obama has targeted the oil company subsidies and profits as Americans continue to get squeezed harder and harder at the pump. As gas prices rise here and around the world, economists fear the oil companies could force the world economy back into recession.

“Last year the three biggest U.S. oil companies took home more than $80 billion in profits. Exxon pocketed nearly $4.7 million every hour. And when the price of oil goes up, prices at the pump go up, and so do these companies’ profits,” Obama said. “In fact, one analysis shows that every time gas goes up by a penny, these companies usually pocket another $200 million in quarterly profits.”

Breaking those numbers down further, according to Obama’s numbers, Exxon-Mobil made roughly $1,305 every second in the 2011 fiscal year.

Republicans counter that ending the tax subsidies for big oil companies could further increase prices at the pump.

  • Glenn Pauls

    This article dose not even mention what the subsidies are. Are they actual subsidies, in which case I fully agree we should not subsidize any energy industry including the supposed green industries. Not the governments job! Or are these subsidies actually equipment depreciation deductions that are standard business practice where a business can deduct equipment cost as an expense over a period of years. This is not a hand out, this is not paying a tax on the purchase of equipment needed to do a job and attempt to make a profit. Equipment wears out which is a cost of doing business.
    The article also goes over board to give examples of the massive profits of oil companies. Not so much as a peep on what the profit margins are. When you take the profits minus the money spent to get the oil to the pump that leaves you with the actual cash the oil companies get to take home, pay stock holders and invest in future projects. This is the Profit Margin. You can make a billion dollars profit but if you spent a billion and one, your profit margin is less than zero. The current return on dollars spent to get gas to the pump is about 6%. To put this in perspective the taxes levied on average in the US is 15 to 20%, so who is raking in the profits? Compare that to a company like Google that takes over 30% profit margin regularly.
    There is nothing wrong with a company making a good profit margin. That is what pays wages, buys new goods and builds infrastructure. It is also where donations and charity come from. If you think you are being over charged for a product buy from another source, it’s called free market competition.

  • ablubud

    Why isn’t the headline “Republicans in Senate vote to continue
    subsidies to Big Oil”

  • suibne

    Obama is done. Finished. He is the most detested president in the history of america. with good reason. he is running a shadow socialist government against the will of the people. he should be arrested, cuffed and jailed. he is a traitor.


    • gary

      you coward you slimie coward. how about doing your job as a republican and work to get this country working instead of blocking everything and then blaming the president. you usless coward. i wish i new you so i could teach you some charecter.

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