Tax Subsidies


The oil company subsidy is approx $ 2 Billion/per year. The Federal Deficit is $ 1.4 Trillion.  Thus , the substantive tax issue is not the subsidies, rather it’s the deficit spending.

The number of Americans who pay federal income taxes has been shrinking every year, with a recent report suggesting that less than half of American households owed federal income taxes in 2009. One of the key components of Obamacare, tax subsidies to purchase federally approved health insurance, will substantially increase the number of people who are not paying for government services and thus have a lower incentive to be concerned about record-breaking government spending. These tax subsidies, which take effect in 2014, will also harm the economy by increasing the national deficit and by creating huge marginal tax rates that will discourage productivity for many households.