Who is subsidizing whom?

Who is subsidizing whom?

March 15, 2012 | Posted by Ken Cohen

In its lead editorial yesterday, The Wall Street Journal took a hard look into the Obama administration’s campaign to end so-called “subsidies for Big Oil.” The paper’s conclusion turns the administration’s claims on its head: “The truth is that this industry is subsidizing the government.”

This is the flip side of the coin that few realize – the oil and natural gas industry is an enormous source of revenue for the U.S. government. In fact, the industry pays the federal government approximately $86 million a day – or about $31 billion a year – in rents, royalties, bonuses and corporate taxes. That doesn’t even include the payments made at the local and state levels.

At times, the industry is actually sending more to local, state and federal governments in taxes and fees than what it earns in the United States. According to the Journal: …..

So what about those “subsidies” that oil and gas companies supposedly get?  “These aren’t direct cash handouts like those that go to the green lobby,” the Journal says. “They’re deductions from taxes that cover the cost of doing business and earning income to tax in the first place. Most of them are available to other manufacturers.”  To Read More…..