As both oil industry profits and gas prices continue to rise, Congressman Bruce Braley (D – IA) believes that it is time to end the billions of dollars worth of subsidies that the United States hands out to oil companies on an annual basis. In his proposed Clean Energy Jobs bill, Braley would end the tax breaks and other subsidies that flow to the oil industry, and use that money instead to create clean energy jobs, invest in biofuel production, and pay down the national debt.
These oil industry subsidies are nothing to scoff at. In 2005, then-President George W. Bush authorized a total of $32.9 billion worth of new subsidies for the industry over five years, bringing the annual total of their subsidies to a staggering $39 billion. The new subsidies were put in place at a time when Americans were paying the highest price for gasoline at the pump in history, which coincided with the largest oil company profits to date.
How do you successfully phase out fossil fuel subsidies in less than 10 years? The first step would be identifying what a subsidy actually is.
And if you’re the British Government, you...