Corporate welfare is a nickname that compares government subsidies to corporations with welfare payments to the poor. It is used to describe government subsidies of money, tax breaks or other favorable treatment for selected corporations. Studies show that about $100 billion was allocated in the federal governmentâ€™s budget for all types of corporate welfare in 2012, not including tax loopholes or trade barriers. Two of the largest recipients of this aid are oil and agricultural corporations. During a time of record oil prices and record profits among oil companies, Congress gave subsidies to oil companies worth $30 billion over the past five years. These companies receive subsidies for oil exploration as well as for the exhaustion of oil and gas wells. Critics say that besides wasting billions in revenue for our Treasury, these subsidies have led to a reckless search for oil in fragile environments like the deep floor of the Gulf of Mexico. They claim the 2010 catastrophe at the Deepwater Horizon oil drilling rig can be directly linked to oil-friendly legislation over the last 20 years.
For many decades, agribusiness corporations have also been receiving corporate welfare. Our government provides unlimited crop insurance subsidies to many large and small farms, guaranteeing payment for damaged crops and low crop prices. Taxpayers pay two thirds of these insurance premiums as well as most of the claims resulting from a disaster. As a result, crop insurance is the most costly and least equitable component of the farm safety net, costing twice as much as direct payments and other subsidies. Some policyholders annually receive more than $1 million in premium support. More than 10,000 policyholders receive more than $100,000 in subsidies each year. Because there are no limits on these subsidies, the largest 1% of policyholders receives about $227,000 while the bottom 80% receives about $5,000 each year.
H.R.601 – Permanent Repeal of Oil Subsidies Act
S.446 & H.R.943 – Crop Insurance Subsidy Reduction Act
I oppose reforming corporate welfare policy and wish to defeat H.R.601 and S.446 & H.R.943
I support eliminating subsidies for oil companies and directing the Secretary of the Interior to issue regulations establishing a graduated annual production incentive fee governing federal onshore and offshore lands subject to an oil or natural gas production lease but for which such production is not occurring; prohibiting the Secretary from issuing new oil or natural gas production leases in the Gulf of Mexico under the Outer Continental Shelf Lands Act to a person that does not renegotiate its existing leases in order to require royalty payments if oil and natural gas prices are greater than or equal to specified price thresholds; depositing the prescribed fee assessment into the general fund of the Treasury, and wish to pass H.R.601
I support amending the Federal Crop Insurance Act to immediately reduce crop insurance premium subsidy rates from the higher subsidies provided since the Agricultural Risk Protection Act of 2000, and wish to pass S.446 & H.R.943