At the G-20 meeting in Pittsburgh today, President Obama and the other G-20 leaders called for an international end to fossil fuel subsidies. Taxpayers for Common Sense applauds this announcement. TCS has demanded an end to oil and gas giveaways for more than a decade. Since the early 1900’s, the oil, gas and coal industries have received billions in lucrative subsidies courtesy of American taxpayers. At the same time oil and gas companies have reaped record profits while continuing to ask for more handouts.
In the fiscal year 2010 budget proposal, the Administration took an important first step toward ending these handouts by requesting more than $72 billion in cuts to oil and gas subsidies. But, that is only the beginning. Billions more in existing tax breaks, royalty holidays and direct subsidies need to be eliminated. In order to get our nation’s energy policy on the right track, the Administration must aggressively tackle these additional subsidies. They must also be vigilant in thwarting the fossil fuel industry’s efforts to repackage themselves as part of the climate change solution. The Administration must not fall victim to this push for increased subsidies for “synthetic” fuels and “clean” coal. These high-cost, high-risk technologies offer only repackaged and rebranded subsidies for fossil fuels. Taxpayers can no longer be asked to pad the profits of oil and gas companies. After a century of subsidies, these mature industries must be asked to stand on their own two feet.
See TCS' analysis of oil and gas subsidy eliminations in the president's FY2010 budget proposal
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