Orrin Hatch Defends SUV’s, Minivans and Oil Company Tax Breaks
EmailABC's Z. Byron Wolf (@zbyronwolf) reports:
Oil company executives have only just started testifying on Capitol Hill. They’ll face questions from Democrats who want to do away with tax breaks for oil companies that are mean to increase production and exploration for oil – and net $21 billion for the government over the next ten years.
But the oil company executives aren’t the only ones defending the tax incentives. Sen. Orrin Hatch, the ranking Republican on the Committee, gave a long, detailed, and at times funny speech during which he said the hearings are a dog and pony show with the help of a large picture of a dog sitting atop a pony. Read more here about the hearing and Democrats’ plan to raise taxes on oil companies.
“I know which one the horses ass is,” Hatch said, apparently referring to the photo, before clarifying he shouldn’t use such language because his wife will get mad at him.
Hatch defended Americans who want to drive minivans and SUVs – they have kids, he argued, and need the space. He said that raising taxes on an industry because they make profits is unfair.
“What if an increase in demand for coffee results in Starbucks reporting record profits?”
Hatch said that raising taxes on oil companies would raise prices even further, essentially raising taxes on Americans too. Higher taxes are not what the country needs, he said, arguing that a more comprehensive energy policy that expands production of all kinds of energy would work to solve the problem of high gas prices.
“I would be doing a grave disservice to my constituents if I were to ignore the consequences of these tax increases,” he said.
Hatch carried on for a while and at one point, Sen. Jay Rockefeller, D – West Virginia, interrupted to ask if he was about done.
“No I'm not through yet. And I'm not going to be through when I’m through,” Hatch shot back, before adding, “But I’m almost through.”
Watch Hatch’s speech here:
UPDATE: As a rejoinder to Hatch's argument that the hearing was a dog and pony show, Sen. Chuck Schumer, D-NY, said, "You’d have an easier time convincing the American people that a unicorn just flew into this hearing room."
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They’re talking about getting rid of tax subsidies, not raising taxes, right? So when they cut Pell Grant funding, they’re actually raising my taxes because I am no longer being subsidized by the Federal Government to improve my economic viability? Huh?
Posted by: Chris Lawson | May 12, 2011, 11:06 am 11:06 am
the main point is that Obama has committed himself to destroying certain parts of the energy industry. Remember he pledged to bankrupt coal plants for one and his czars have often in the past lamented that US oil prices were too low, so we had no incentive for the Green schemes. Remember Obama’s ideal is a centrally planned economy in which he can dole out favors, contracts, and profits to select companies. Hence all the money wasted on “green” companies, passenger trains, light-rail, bike paths, etc: even though the traditional energy sources provide the energy more efficiently and cheaply….which is why Obama needs to tax and regulate to find ways to make oil, natural gas, etc more expensive.
Posted by: Ed | May 12, 2011, 11:36 am 11:36 am
ed ….any way you can prove anything that you stated about the President?…..didn’t think so,more hyperbole
Posted by: a sane txn | May 12, 2011, 12:39 pm 12:39 pm
I have heard several people with SUV’s talk about selling them. Probably that attitude is the reason oil prices are falling.
Posted by: peanut | May 12, 2011, 1:06 pm 1:06 pm
Chris – They aren’t subsidies. The ExxonMobil CEO makes a good point when he says if you eliminate it, eliminate it for everyone (newspaper printers, coffee roasters, Hollywood Film Studios, etc.).
Posted by: JD | May 12, 2011, 1:07 pm 1:07 pm
ah what about the deficit? why should we subsidize oil companies? isn’t their business sound enough without them requiring government special tax breaks?
gosh their must be another widow or orphan that can be kicked to the street to support continued oil company subsidies. billions? ridiculous.
don’t get me started on ge making 5 billion in profit and paying zero taxes
Posted by: florida IT | May 12, 2011, 2:14 pm 2:14 pm
It would be interesting to see how much $$$ Mr Hatch gets from oil companies. He is the one thats out of touch. Gas is not like coffee, coffee will not take you to work.
Posted by: mike | May 12, 2011, 3:00 pm 3:00 pm
Ok here is a quick two that come to mind…many more out there I’m sure!
“So if somebody wants to build a coal-powered plant, they can,” Obama said. “It’s just that it will bankrupt them because they’re going to be charged a huge sum for all that greenhouse gas that’s being emitted.”- Barack Obama
“Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” – Steven Chu (Obama Sec.of Energy)
Posted by: Ed | May 12, 2011, 3:26 pm 3:26 pm
I don’t hear you liberals complaining about that 86 million PER DAY tax revenue from them evil oil companies. I wonder how many food stamps and health care that buys you guys. By the way, they don’t set the prices of gas you simpletons, it’s the traders. OPEC and the government mandates, regulations and taxes that all contribute. Shows how uneducated you all are. Your president could bring prices down with one phone call to OPEC telling them we’re going to start drilling in Alaska tomorrow.
Posted by: Rick W | May 12, 2011, 7:12 pm 7:12 pm
Hey Orrin, I employ 7 people. Where are my tax incentives?
I need record profits
Posted by: Kathy Coe | May 12, 2011, 9:38 pm 9:38 pm
If you drill in American that doesn’t mean the price of oil goes down. They put that supply into the world market and the price is what it is. I hedged gasoline this year and came away with a tidy profit. I guess the question should be what is the role of government. I believe it is to help the general welfare of the people. Apparently many don’t believe that they believe it is to help corporations.
Posted by: Gary | May 13, 2011, 3:32 am 3:32 am
Oh I forgot to add good job George Bush buying oil on the world market at $100-$140 a barrel and putting into the ground in Baltimore for the Strategic Oil Supply. That only cost the tax payer $2,125,000,000. If oil ever gets above $140 a barrel we can sell it and make some money!!!!!!
Also to the person who asked how much gas do we get out of a 55 gallon barrel it is actually about 86 gallons of gasoline, this is caused by cheaper additives and expansion during the refining process.
Posted by: Gary | May 13, 2011, 3:37 am 3:37 am