McCain: Big Oil should return some profits to consumers

This is from a June. 11, 2008 MSNBC News story:

WASHINGTON - Record high prices for gasoline probably won't drop any lower before the November election, Republican John McCain said Wednesday.

"I don't think it's going much lower, and it could go higher," McCain said on NBC's "Today Show." "I don't think so, not when you've got a finite supply, basically, and a cartel controlling it."

Although the GOP presidential candidate didn't address the question of raising taxes on oil companies, he said the companies "absolutely" should return some profits to consumers. "And they should be embarking on research and development that will pay off in reducing our dependence on foreign oil," he said.

"The point is, oil companies have got to be more participatory in alternate energy, in sharing their profits in a variety of ways, and there is very strong and justifiable emotion about their profits," McCain said.

The issue of oil company profits came up this week in the Senate, where Republicans stopped the Democrats from imposing a tax on windfall profits and taking away billions of dollars in tax breaks in response to the $4-a-gallon price of gas.

The key point here to remember is that Americans are starting to get angry on getting hit with $4-a-gallon gas prices, while also realizing the huge profits oil companies are making today. The Senate dragged Big Oil execs in for another dog and pony show. Senate Republicans blocked a windfall-profits tax hike on Big Oil profits. Finally, gas prices continue to climb to over $4.00 a gallon. And it is the rising gas prices that is the biggest issue. When it is costing you almost $80 to fill your SUV tank, this becomes a big election year issue here.

Which is why we see Republican presidential candidate John McCain playing the populist card here in selling himself as the president who will reduce the gas prices so that Americans can drive their gas-guzzling SUVs in blissful happiness. It is all a bunch of McCain campaign PR-spin to get McCain elected into the White House. McCain's "gas tax holiday" is a huge policy failure, where economists say that the repeal of the 18.4 cent federal tax would increase the demand of people driving more, while keeping the supply of gas at the same levels as refineries are working at full capacity to maintain current demand, and not be able to supply increased demand. Gas prices would still continue to rise. In addition, the repeal of the federal gas tax would cost billions from the U.S. Treasury, forcing cutbacks in the building of roads and bridges, resulting in job losses. The winners of this gas tax holiday would be the oil companies, who would benefit from the higher gas prices caused by the short-term increase in demand coupled with the restriction of supply. It doesn't matter if McCain's gas tax holiday is passed or not--he is selling it as a populist measure to court votes. And even if the gas tax holiday is passed, the benefits still go to Big Oil, leaving American consumers' pocketbooks empty.

Now we come to McCain's agreement that Big Oil should return some profits to consumers. Again, it is more PR-spin. McCain was absent on the vote which Republicans blocked the windfall profits tax on Big Oil. It is rather ironic that McCain can demand that Big Oil should return some of the profits to consumers, of which he doesn't say how the oil companies should return those profits, while at the same time be conveniently absent on a Senate vote which attempted to eliminate Big Oil tax breaks and force the oil companies to shift their windfall profits in renewable energy resources. So McCain gets a chance to rail against the oil companies, while doing absolutely nothing to change their behavior. If John McCain gets elected into office, you can bet that he will ignore, or oppose, any attempt at reducing Big Oils' windfall profits by either higher taxes, reduced government subsidies, or any other legislation.

Then there is McCain's corporate tax cut plan, and how it would benefit Big Oil. According to The Center for American Progress, McCain's plan for cutting the U.S. corporate tax rate from 35 percent to 25 percent would cut taxes for the five largest U.S. oil companies by $3.8 billion a year (See chart below).

Chart showing Big Oil savings under McCain corporate tax cut plan. From The Center for American Progress

Finally, John McCain has gotten into bed with Big Oil. According to McCain Source:

McCain has Taken At Least $720,613 from the Oil & Gas Industry. According to a Public Campaign Action Fund analysis of campaign finance data provided by the nonpartisan Center for Responsive Politics Center, John McCain accepted at least $720,613 from the oil and gas industry since 1989. [Center for Responsive Politics via Campaign Action Fund]

McCain Voted for $5 Billion in Tax Breaks for Big Oil. In 2006, McCain voted for the conference report on H.R. 4297, which included $5 billion in tax breaks for big oil. McCain voted for the conference report, even though Republicans added back in two tax loopholes that have allowed the oil industry to avoid paying their fair share of taxes. The conference report passed 54-44. [H.R. 4297, Vote #118, 5/11/2006]

McCain Voted To Allow Oil Drilling In The Arctic National Wildlife Refuge. In 1995, McCain voted multiple times in favor of amendments to the extreme GOP budget (HR 2491) to open the Arctic National Wildlife Refuge (ANWR) to oil drilling. McCain also voted for the final Senate and conference versions of the bill, which contained language to allow oil drilling in the ANWR. President Clinton vetoed this extreme GOP budget bill. [Senate CQ Vote# 190, 5/24/95; Senate CQ Vote# 525, 10/27/95; Senate CQ Vote# 556, 10/28/95; Senate CQ Vote# 584, 11/17/95;]

McCain Voted Against American Consumers and for Rich Oil Companies... TWICE. In 2005, McCain twice voted against legislation that would have temporarily taxed oil company profits and provided consumers with a tax credit. [Senate Roll Call Vote #341, 11/17/05; Senate Roll Call Vote #331, 11/17/05]

McCain Voted Against Renewable Energy Technology. In 2001, McCain voted against establishing tax credits for investments in renewable energy technologies, incentives for new energy efficient residential construction and tax deductions for increased energy efficiency in commercial buildings. The motion failed 43-56. [H.R. 1836, Vote #125, 5/21/2001]

McCain Voted Against Protecting National Park Land from Oil Drilling and Exploration. In 2001, McCain voted to kill an amendment prohibiting the use of funds for the pre-leasing or leasing of oil and gas, or other exploration activities within lands designated as national monuments. The motion to kill failed 42-57. [H.R. 2217, Vote #229, 7/11/2001]

And lest we forget, McCain told us that the U.S. war in Iraq is for oil:



Are you really going to believe this snake-oil salesman?