Mr. President, I ask unanimous consent to speak as in morning business. Mr. President, we just had a vote. Imagine for a minute we had a government that was spending too much money, and imagine for a minute that we needed to spend less…
Mr. President, I ask unanimous consent to speak as in morning business.
Mr. President, we just had a vote. Imagine for a minute we had a government that was spending too much money, and imagine for a minute that we needed to spend less money; that we needed to change our Tax Code to a Tax Code that was fair, simpler, and didn't pick winners and losers. Imagine for a minute this was a crisis, and imagine for a minute this crisis was being wielded like a political 2 by 4 by the majority of the Republicans who serve in the Senate--the debt crisis.
Then imagine for a minute that we had the most profitable corporations in the history of the planet and they were booking $30 billion in profit every quarter; over $130 billion in profits year after year, didn't matter whether the economy was bad, good or indifferent--amazing profits.
Then imagine for a minute this government--that doesn't have enough money, where the debt is the political talking point of my friends across the aisle--tries to do something simple by saying maybe we shouldn't be spending money on the most profitable corporations in the world. That is what this vote just was.
How seriously can we take anybody who talks about debt reduction if they are not willing to pluck the low-hanging fruit of subsidies to a group of folks who, frankly, in Missouri, I guarantee you most people I represent would say are the least deserving of extra help from the Federal Government right now.
If we think about it, what we are doing is we are borrowing money to prop up, to the tune of billions of dollars a year, already wildly profitable corporations that don't have to pay us royalties because they get to deduct the royalties they pay other countries.
Seriously, if this was a fairytale I was reading to my grandsons--if I was reading this fairytale to Ian or Levy or Isaac--they would say: Well, this obviously is fiction because this couldn't be true. But it is, and that is what I call the definition of a special interest--that oil is so special around here, wields so much power and so much money that it turns all the talk about debt reduction into empty rhetoric.
Last year, the five companies spent $38 billion boosting their share prices just through stock buybacks--$38 billion in stock buybacks last year. In other words, the five largest oil companies spent in a single year on stock buybacks alone what they are claiming they need in taxpayer-funded subsidies over the next 10 years.
According to ExxonMobil's quarterly filings, every time the price of oil goes up by $1, they bring in $350 million in annual profit. These companies don't need these subsidies.
I hear people say, Well, if you don't give them the subsidies--which, by the way, is chickenfeed to them. What, $6 billion, $8 billion a year is nothing if you are banking $30 billion in profits a quarter. I have heard people say, If we don't give them this extra help, then they are going to quit exploring for oil and the price of gas will go up. That is so dumb. They have had these subsidies for 30, 40, 50 years. I think most of Americans realize the price of oil has gone up just fine during that time. We are paying plenty at the gas pump right now, and they have got those subsidies. How is that working out for us? Those subsidies are really keeping down the price of gasoline, aren't they?
The former Shell CEO, John Hofmeister, is on record as saying:
In the face of sustained high oil prices it is not an
issue--for large companies--of needing the subsidies to
entice us into looking for and producing more oil . . . my
point of view is that with high oil prices such subsidies are
unnecessary.
This is the CEO of Shell. He is admitting on the record that these subsidies
are unnecessary. At the time the Shell CEO said that, the price of oil was trading between $95 and $98 a barrel. Currently, it is at $105 a barrel. Contrary to the claims that some are making, eliminating these subsidies will not raise gas prices.
Last year, the companies spent $70 million to lobby to keep their subsidies. They get about $30 in tax breaks for every $1 they spend in lobbying. No wonder they spent that much on lobbying.
I want to take people at their word, and I want to take people seriously about debt reduction. I have cosponsored spending caps with my Republican colleagues. I have worked hard on reforming the way we spend money around here, whether it is contracting or earmarks. But with all due respect, I don't know how the American people can take anyone seriously about debt reduction if they are not willing to cut off from the spigot the most wealthy, profitable corporations in the history of the world.
How will we ever be able to look our grandchildren in the eye and say, You know, we took care of your future by making sure that our government was fiscally balanced. How can we ever do that if we can't do this as an easy first step? Can you imagine how paralyzed this place will be when we start talking about the kinds of cuts that hurt people who need them? And by the way, they are willing to make those. Talk about fairness. Think about this for a minute, economic fairness.
The Ryan budget would want to hold onto more tax breaks for multimillionaires--in fact, do more tax breaks for multimillionaires-- while they say to seniors, You know, we think it is time for you to wrestle with insurance companies for your health care. I know what it is like to wrestle with insurance companies for health care. Every American does. My mom doesn't have to. She is on Medicare. It gives her peace of mind.
If you look at what our friends are proposing in terms of fairness and you look at the vote we just had, in Missouri we would say that dog don't hunt. It doesn't work.
I hope in good faith that my Republican colleagues will quit thinking we need to continue to write checks to the wealthiest corporations in the history of the planet. I think Missourians--when I fill up my gas tank over the next 2 weeks as I travel around Missouri, I am going to stop people at the gas station and say, Do you think the royalties ExxonMobil pays to another country should be deducted from what they owe us? Think about that. It is ludicrous in this financial environment that we are in, in the U.S. Government. There are real people hurting out there, and we need to treat them fairly. We can start by pushing Big Oil away from the taxpayer trough, and I hope my colleagues on the other side of the aisle will reconsider and that we will get a chance to vote on this again and that they can show the American people we all get it.
Madam President, I yield the floor.