WASHINGTON – National Farmers Union (NFU) President Roger Johnson sent a letter to U.S. Senate and House of Representatives leadership today urging elimination of tax subsidies for the oil industry.
“At a time when most Americans are pinching pennies, oil companies are posting record profits,” said Johnson. “For example, Exxon Mobil recently reported first quarter earnings of $10.6 billion, a 69 percent increase over profits for the same quarter last year. Other oil companies have posted staggering first quarter profits as well.”
Eliminating subsidies for the oil industry would save nearly $40 billion over 10 years.
“Money saved from eliminating tax loopholes for oil companies should be used to take action to provide consumers relief at the pump by investing in biofuels,” said Johnson. “According to a Michigan State study, increased ethanol utilization can produce a positive net impact, ranging from $55.60 to $193 for individuals and $68.50 to $404.50 for a family of four. Investment in biofuels production and infrastructure makes sense for a stronger economy, greater national security, and a cleaner environment.”