Wed March 28, 2012
Kentucky Lawmakers At Odds Over Oil Subsidies
Kentucky Congressman John Yarmuth says it’s time to end all federal subsidies to oil companies. The Louisville Democrat has introduced legislation to return the savings to consumers.
Drivers would get about $160 per registered vehicle. Congressman Yarmuth argues tax breaks can’t be justified when oil companies are posting record profits while consumers struggle to fill up their gas tanks.
"It will inject directly and immediately $38.6 billion directly and immediately into the U.S. economy. Under the bill, the Treasury and IRS will oversee and distribute the rebates,"Yarmuth replied.
Meanwhile, Kentucky Senator Rand Paul says penalizing oil companies for doing well is not a strategy for creating jobs.
"These exemptions and business deductions apply to other businesses, but they want to take them away from one of our successful industries. Now it seems to me if an industry is successful and creates 9.2 million jobs, instead of punishing them, you should want to encourage them," argued Paul.
The Bowling Green Republican says the federal government should instead be removing obstacles that prevent oil companies from making even more money.