White House calls for end to tax loopholes for Big Oil to pay for new infrastructure projects

by Joel Wendland

In a teleconference with reporters following President Obama's economic policy speech in Cleveland, Ohio today (Sept. 8), Deputy Assistant to the President for Economic Policy Jason Furman told reporters the administration wants Congress to end tax loopholes for oil companies in order to partially pay for a new round of economic stimulus.

"The big oil companies actually pay lower tax rates on their profits than most other corporations in the economy," he said. "Get rid of those tax breaks so the big oil companies are being treated just the same as every other corporation when it comes to taxes."

Furman added that additional revenue could be created by closing some 350 loopholes that still provide incentives for companies who move their profits out of the country or who move jobs overseas. You may recall that some of these loopholes were closed in the August jobs bill to help pay to keep teachers in the classrooms of America's public schools.

Furmand touted the Obama administration's accomplishments in the economy. In addition to the recovery act, President Obama's legislative accomplishments include the "cash for clunkers" program, extension of the homebuyer tax credit, tax credits for businesses to hire unemployed workers and those involved in infrastructure projects, and with the passage of the new jobs bill last month.

Furman also noted that new tax credits the President has proposed would be designed to benefit companies who do research and development here in the U.S. He added that the President wants to pay for new tax credits and infrastructure projects by ending massive government tax subsidies for the biggest oil companies. The total amount of the new economic stimulus package would be close to $350 billion:

1) $50 billion for infrastructure (highway, rail, runway repair and construction)
2) $200 billion in tax credits for new equipment purchases (essentially allowing businesses to frontload their tax credits for these purchases)
3) $100 billion in new tax benefits for companies who invest in research and development projects in the U.S.