Harry Reid Tells Republicans No Deal Unless Big Oil Subsidies are Eliminated

[teko]

Majority Leader Harry Reid said today that any budget deal must contain new revenue, and he specifically mentioned eliminating subsidies to Big Oil.

HARRY REID: The American people need to understand that it’s not as if we’ve done nothing for the debt. $2.6 trillion. $2.6 trillion already we’ve made in cuts. And all those cuts have come from nondefense programs.

We– we need to k– keep our eye on the prize and continue doing something about spending. But I think that what we need to do is do some of the things that Mitt Romney talked about. He said there’s some low-hanging fruit. There are a lotta tax loopholes that should be closed. I agree with him. We haven’t done that.

Sen. Reid was correct. The actual amount of federal subsidies to the oil industry is $4 billion per year. This means an elimination of the subsidies would net $40 billion in savings over a decade. This may seem like a drop in the bucket, but as a practical matter it makes no sense to give taxpayer money to an industry that turned an $80 billion profit last year.

President Obama has been targeting the Big Oil subsidy for elimination for years, but he has been blocked by congressional Republicans and some oil state Democrats from eliminating this waste of taxpayer dollars. Republicans always talk about closing tax loopholes and cutting subsidies, but completely freak out at the mention of cutting the subsidies for Big Oil. Reid was suggesting that Democrats use the sequester threat to leverage more revenue out of Republicans. (This is the strategy that John Boehner is counting on using to get spending cuts out of the Democrats. The difference is that public opinion is with Obama and his party.)

http://1stcontact.newsvine.com/_news/2013/02/04/16837699-harry-reid-tells-republicans-no-deal-unless-big-oil-subsidies-are-eliminated

[teko]

let's all hold our breath while Congress bites the hand that feeds it. This one will be an interesting one to watch.

[mikesimon]

Well, I didn't say I thought Romney was stupid. You said that Reid thought Romney was stupid. I don't have any independent knowledge of what Reid's opinion of Romney's intellect was or is today.

[brice1967]

Ain't that grand.  Using a stupid mans ideas....  Thank God for Harry Reid.

[mikesimon]

A rather stupid man can say 2+2=4 and few would disagree with him. As they say - even a blind squirrel finds an acorn once in a while.

[brice1967]

I can't believe that Harry Reid, who basically said Romney was stupid would agree with anything he said.  Wow... hypocrisy, flip-flop?  Whatever.... It sounds like something might happen after all.

[MrsPincince]

"Sen. Reid was correct. The actual amount of federal subsidies to the oil industry is $4 billion per year. This means an elimination of the subsidies would net $40 billion in savings over a decade. This may seem like a drop in the bucket, but as a practical matter it makes no sense to give taxpayer money to an industry that turned an $80 billion profit last year."

So what's the hold up??