Group says gas, oil industry receives $104 million in yearly subsidies

From the Alamogordo Daily News - By Milan Simonich, Texas-New Mexico Newspapers - New Mexico taxpayers contribute $104 million a year for corporations that are among the wealthiest in the country, according to the study, "Subsidy Gusher," by Taxpayers for Common Sense. Jill Lancelot, cofounder of the organization, said one purpose of the study is to pressure Congress to eliminate handouts for oil and gas companies. She said the industry turned a profit of $32 billion for the first quarter of this year for the top five oil and gas companies, but received public handouts even as America's crushing debt grew. In Texas, the industry directly employs 297,000 people and pays taxes of $7 billion to the state and local governments. Perhaps more significant in the context of the study, the tax rate on oil and gas companies is five times per job higher than any other industry in Texas, the spokeswoman said. This is because oil and gas bears a production tax not charged on other industries. New Mexico Oil & Gas Association calculated that oil and gas payments in taxes, royalties and other revenues totaled nearly $1.7 billion. The New Mexico state government's total budget for this year is about $5.4 billion. Lancelot said the nation's debt of $14 trillion and a record U.S. deficit of $1.6 trillion were all the more reason to eliminate the subsidies. "This industry should pay the cost of doing business," she said. "It is simply wrong to have wealthy corporations rake in more than $30 billion in just three months and not be willing to pay their fair share." Read more