The disparity between increasing gas pump costs, increasing profits for the oil companies, along with the enormous contradicting tax breaks offered for petroleum businesses has been cause discontent among lawmakers, taxation and financial experts, and the general public at large.
Top Oils Business Executives Summoned
Business executives in the top 5 oil companies, namely Exxon Mobil, BP, Shell, Chevron, and Conoco Phillips, were invited earlier in May 2011 to Congress' Senate Finance Committee to attempt to work out a solution to the rising pump prices and the tax breaks that seem to only benefit the oil companies.
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Critics Respond to Executives Defense
But most critics and opponents of the controversial tax credits for oil companies have dismissed the arguments posed by the oil company executives as only an effort to keep the goodies provided by Uncle Sam through hefty tax breaks.
After all, any powerful taxpayer would do all in their power to maintain tax breaks coming their way. It is said that elimination of the Domestic Manufacturing Deduction tax break for the oil companies was essential to cut off the unfair advantage for the petroleum industry.
In terms of the argument against local production, critics claimed that if gasoline is generated locally or not.
Congress with the Final Say
Many bills have been proposed in Congress to attempt to deal with the seemingly unfair benefits that oil businesses like through tax breaks. The latest is the S. 940 statement proposed by Senator Charles Schumer that attempts to have decreased tax breaks for leading oil companies, a move which will result in $21 billion in additional taxes raised in the subsequent 10 years.