The Cost of Oil Subsidies
For nearly 100 years, the U.S. government has provided tax breaks and other subsidies to encourage the production of coal, oil and gas. These subsidies cost U.S. taxpayers a lot of money and encourage the production and use of energy sources that pollute the environment.
These two reports provide more details about the cost of subsidies that encourage pollution and how much money the U.S. could save by eliminating these kinds of supports.
- Subsidy Gusher: Taxpayers Stuck with Massive Subsidies while Oil and Gas Profits Soar. This report from Taxpayers for Common Sense, a non-partisan group that that works to eliminate wasteful government spending, looks at the cost of subsidies in comparison with the profits reaped by the companies that receive them. The study concludes that oil and gas companies "are highly profitable, heavily subsidized, and well‐connected in Washington. While this scenario makes for a very lucrative business model, it has and continues to needlessly cost taxpayers billions. Now that the deficit and debt limit are pressing our budget to its limit, these outdated and unnecessary giveaways must end." Read the report.
- Green Scissors Report: This report identifies wasteful government subsidies that are damaging to the environment and could end up costing taxpayers more than $380 billion. It was put together by environmental and taxpayer accountability groups, who "all agree that we can begin to overcome our nation’s budgetary and environmental woes by tackling spending that is not only wasteful, but environmentally harmful." The report identifies some $282 billion in taxpayer subsidies, tax breaks, and other programs that encourage pollution. Read the report.