As President Obama and Congress look for budget cuts, some experts say federal energy subsidies are ripe for trimming. Among oil companies, nuclear power, and coal, who gets what from US taxpayers?
Desperately seeking fiscal savings, Congress and President Obama are scrambling to find anything in the federal budget that can be thrown overboard, from child nutrition aid to funding for military bands.
But the American people might be on to something. In a poll conducted for NBC and the Wall Street Journal, three-quarters of respondents favored "eliminating tax credits for the oil and gas industries." Specifically, 47 percent said they found such cuts "totally acceptable" and 27 percent said they found it "mostly acceptable."
To some budget hawks cutting subsidies to mature and profitable energy industries is an inevitable part of any budget deficit solution. "Clearly most of the attention has been focused on non-security discretionary budget,” says Steve Ellis, vice president of Taxpayers for Common Sense in Washington. “But even if we eliminated every dime of that, we would still have a trillion-dollar deficit. So these issues like subsidies for the oil and gas industry – and the tax code – are going to have to be tackled."