Boehner opens door to cutting U.S. oil tax breaks

WASHINGTON Tue Apr 26, 2011 8:26am EDT

House Speaker John Boehner (R-OH) listens to questions during a news conference on Capitol Hill in Washington, April 14, 2011. REUTERS/Jim Young

House Speaker John Boehner (R-OH) listens to questions during a news conference on Capitol Hill in Washington, April 14, 2011.

Credit: Reuters/Jim Young

Related Topics

WASHINGTON (Reuters) - Congress should consider cutting multibillion-dollar subsidies to oil companies amid rising concern over skyrocketing gas prices, House of Representatives Speaker John Boehner said on Monday.

"It's certainly something we should be looking at," Boehner said in an ABC News interview. "We're in a time when the federal government's short on revenues. They ought to be paying their fair share."

"Everybody wants to go after the oil companies and frankly, they've got some part of this to blame," he said.

But Boehner said he also wanted to "see all the facts" first.

Boehner's remarks echoed concerns expressed this month by President Barack Obama, who asked Congress to repeal $3.6 billion in annual oil, natural gas and coal subsidies, a move that would total $46.2 billion over a decade and help pay for clean energy initiatives.

But Boehner's comments go against Republican orthodoxy because the party traditionally is very supportive of the oil and gas industry and rejects most policies that would raise the costs of domestic energy production.

Boehner also suggested that Obama could lose the 2012 election if gas prices do not decline.

Rising fuel prices are a persistent concern for the White House, which is worried about their impact on the economy as Obama mounts his run for re-election.

A New York Times-CBS News poll found that 70 percent of Americans believe the country is on the wrong track and analysts believe gas prices are a main reason for this.

The Obama administration tried unsuccessfully during the last Congress to cut tax breaks and subsidies for fossil fuels.

The attempt to end the subsidies has been strongly condemned by oil and gas companies, which argue that abolishing the tax breaks would reduce domestic drilling, cost jobs and increase U.S. reliance on foreign energy suppliers.

"This is a tired old argument we've been hearing for two years now. If the president were serious about job creation, he would be working with us to develop American oil and gas by American workers for American consumers," the American Petroleum Institute's chief economist John Felmy said.

Unrest in the Middle East has pushed crude oil prices above $110 a barrel. U.S. retail gasoline prices hit $3.88 a gallon over the last week, the highest level since the summer of 2008 when prices reached a record $4.11 a gallon, the Energy Department said on Monday.

Asked who the American people should blame for high gas prices, Boehner pointed the finger at Obama and said the president won't win re-election of gas prices are "$5 or $6" a gallon.

(Reporting by JoAnne Allen and Ayesha Rascoe; Editing by Eric Walsh)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (40)
USAPragmatist wrote:
I am making prediction that within 48 hours Boehner will say something to the effect of ‘No New Taxes=No cuts to tax breaks.’.

Apr 25, 2011 10:24pm EDT  --  Report as abuse
fromthecenter wrote:
These companies have been holding our government and people hostage for too long. They have continued to rake in record profits… To me this was a no brainer in the first place.

Apr 25, 2011 10:31pm EDT  --  Report as abuse
bck555 wrote:
I wish Boehner would wait to “see all of the facts” BEFORE making such compromised statements to the press. After the facts emerge to him, he will see just how foolish he now looks.

Apr 25, 2011 10:34pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.