Has Subsidy-Scrapping Time Arrived?

[Geee]

American Spectator:

One day last week Senate Democrats engaged in one of their favorite indoor sports: beating up on oil companies. They convened a kangaroo court (aka a hearing) to give tongue-lashings to the CEOs of major oil companies, just to make sure American motorists know it is this greedy bunch that is responsible for soaring gasoline prices.

"Take away their subsidies," they cried. The media missed the irony in the sharp inquisition by Sen. Jay Rockefeller (D-WV), heir to a large Standard Oil fortune (of which Exxon is a modern descendant).

One of the accused said taking away the subsidies was okay if all government subsidies met the same fate. In calling for reform of the tax system, many Republicans and some Democrats propose lowering corporate tax rates sharply in exchange for eliminating "loopholes" (special tax deductions, credits, and direct subsidies). This was echoed by Exxon CEO Rex Tillerson at the hearing: "If you want to repeal it [a subsidy] repeal it for everybody." The tax reform act signed by President Reagan in 1986 represented a similar effort -- successful at the time -- but gradually, as taxes increased again, new loopholes were added to counter the effect of these.

American taxpayers would save hundreds of billions of dollars if subsidies were eliminated.