Students for a Just and Stable Future
DSC_1595 DSC_1746 DSC_1716 DSC_1608 DSC_1625 DSC_1685 DSC_1605 DSC_1590 DSC_1789 DSC_1654 DSC_1619 DSC_1582 DSC_1597 DSC_1747 DSC_1749 DSC_1577 DSC_1583 DSC_1607 DSC_1579 DSC_1600 DSC_1740 DSC_1676 DSC_1617 DSC_1777 DSC_1578 DSC_1748 DSC_1745 DSC_1574 DSC_1613 DSC_1692

Economic Impacts

Studies have shown that removing these tax preferences would affect less than 1% of the revenue of fossil fuel companies, and have very slight effects on oil production, gas prices, jobs, or the economy.  In fact, studies have predicted that if we removed the market distortions from this fossil fuel favoritism, overall economic activity would be stimulated[1]!

How much would this cost the average American consumer?  According to one study, less than a cup of coffee—only $1.42 more per year!  Other studies have found different consumer cost increases, but the very maximum is $6.50 a year, still less than an hour’s work at minimum wage[2].

Proposed budget cuts that eliminate these harmful fossil fuel subsidies would save us more than $40 billion over the next decade[3].  We are in a recession—we need this money to provide tax relief to struggling families, pay off the national debt, upgrade our public transit systems, create jobs in the clean energy sector, or any other number of valuable investments in America.

More information can be found at this report prepared by Resources for the Future.


Take action to cut harmful fossil fuel subsidies from the 2013 budget by

[1] Allaire, Maura and Brown, Stephen.  “Eliminating Subsidies for Fossil Fuel Production:  Implications for U.S. Oil and Natural Gas Markets.”  Resources for the Future.  December 2009.    p13, 14.

[2] Ibid, p6,7.

[3] ”Department of Energy.”  Office of Management and Budget.  Retrieved 10 March 2012 from <>.