WASHINGTON, D.C. (KMOX)-Calling it a true barometer of how serious people around Washington are about the deficit, Missouri Senator Claire McCaskill is co-sponsoring legislation that would end tax breaks for the five largest major oil and gas companies.
The companies targeted are Exxon Mobil, ConocoPhillips, Chevron, BP and Shell.
McCaskill says repealing the subsidies would cost those companies about two billion dollars a year. She says threats thcompanies would pass the cost to consumers, are just scare tactics, “They will charge what they’re going to charge regardless of whether or not the federal government is giving them an additional $2 billion in profit a year out of a total profit margin of about $125 billion.”
She also doesn’t believe that the loss of the subsidies, will prompt the companies to reduce their efforts to expand domestic oil production, “They are clearly going to still be looking to expand their production if it means they will be more profitable by selling that gas and oil.”
McCaskill says the bill would save up to $21 billion taxpayer dollars over ten years, which would be applied to the deficit.
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