Senator McCaskill says she’s disappointed that those who say they want to cut the federal deficit won’t end subsidies to the nation’s major oil companies.
McCaskill had pushed Congress to end $21 billion in subsidies to the major oil companies over the next 10 years. She rejects the contention of opponents that the cuts would simply be passed on to consumers and that the subsidies help keep oil production here.
“Of course, the oil companies are going to fight to hold on to this money. It’s like a gift of $2 billion a year and they’re going to say whatever they need to say,” McCaskill states. “If these subsidies were going to bring down oil prices, then why have they cut back on refining and why are oil prices so high compared to a year ago?”
The Senate voted nearly along party lines against her measure.
McCaskill, a Democrat, calls it corporate welfare, but Senator Blunt, a Republican, says without it, oil companies will move production overseas. Blunt also claims the measure wouldn’t bring down gas prices.
“But the real bottom line on this oil company discussion is what do we need to do to encourage more US production,” Blunt counters.
He says that will bring down prices at the pump.