To: Congressional Republicans
Fr: Democratic Leader’s Press Office
Da: April 27, 2011
Re: Americans Just Don’t Support Tax Breaks for Big Oil So You Can End Medicare
For the past ten days, you have been in your districts trying to sell the GOP budget that ends Medicare as we know it in order to give more tax breaks to Big Oil. Your constituents aren’t buying it.
And today, as Big Oil begins to announce its extraordinary profits for the first quarter, Americans are wondering when will Speaker Boehner schedule a vote to end billions of dollars in taxpayer subsidies to oil companies.
Just as a reminder, Speaker Boehner acknowledged that oil companies should pay their fair share, and Leader Pelosi called on him to schedule a vote next week to end billions of dollars in taxpayer subsidies to Big Oil.
While Americans wait for you to act, here’s some news you might have missed…
The swift rise in oil prices should produce a windfall for the petroleum industry in the first quarter and set up its best year since 2008.
Exxon Mobil Corp., Chevron Corp. and ConocoPhillips are expected to report this week a combined $18.2 billion in first-quarter earnings, according to FactSet. That’s a 40-percent increase from a year ago and just short of the $20.2 billion they earned in the first three months of 2008…
In 2008, Exxon established quarterly and annual profit records for a public company — $14.83 billion in the third quarter and $45.22 billion for the year. Wall Street is calling for the company to make $40.71 billion this year, about $1 billion more than it made in 2007. Analysts currently expect Chevron to top its 2008 profit of $23.93 billion by about $840 million.
Today, BP and ConocoPhillips announced their first quarter earnings, continuing the week when the biggest oil companies begin to release their 2011 profits. With rising gas and oil prices, analysts expect the five biggest oil companies to announce that they are swimming in revenue.
House Democrats have long advocated the elimination of these outdated and costly subsidies, but so far you have chosen to side with Big Oil every time.
“Your comments yesterday acknowledged that oil companies ought to be paying their fair share,” Pelosi, D-Calif., wrote. “It makes little sense for American consumers — who are now paying over $4 a gallon for gasoline in most parts of the United States — to have billions of their taxpayer dollars subsidizing oil companies that are making record profits.”
Pelosi called on Boehner to “schedule a vote on ending these tax breaks on the House floor” upon Congress’s return from recess next week and noted that she was looking “forward to our working together to achieve this necessary change.”