GOP’s Defense For Oil Subsidies Only Worth Pennies

The GOP’s tired defense for shelling out billions of dollars in subsidies to Big Oil is getting some push back this week. Democrats are making the case on Capitol Hill as to why these dirty energy corporations do not need extended welfare from the federal government.

Nicholas Kusnetz of ProPublica reports:

Most experts agree, however, that the tax incentives in question don’t have much effect on gasoline prices, one way or the other.

“The impact would be extremely small,” said Stephen Brown, a professor of economics at the University of Nevada, Las Vegas. Brown co-wrote a study in 2009 [3] arguing that if the subsidies were cut, the average person would spend, at most, just over $2 more each year on petroleum products.

[Source.]

While Republicans can argue that the extra $2 a year is added cost for the consumer, it is hardly a burden. These are mere pennies compared to the billions Americans shell out each year.

One Response to GOP’s Defense For Oil Subsidies Only Worth Pennies

  1. Pingback: THE BALANCE SHEET: MAY 16, 2011 « The Checks and Balances Project

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