In a move designed to stop the stealth plan of Congress to double-tax U.S. oil companies and subsidize foreign oil interests, the National Taxpayers Union has launched a campaign to blow the whistle on the under-the-radar scheme.
Liberals in Congress want to remove tax breaks for American oil companies that offset tax dollars going to foreign companies. The repeal of these breaks would amount to a double-tax on American oil, sending gasoline and heating oil prices through the roof.
But that's not the worst of it.
The scheme would subsidize state-owned oil interests, such a Hugo Chavez in Venezuela, and foreign oil companies such as BP.
On July 20, 2010, Forbes did a full report on the disastrous proposal. The problem is that the proposal never went away, and Congress is still poised to pass the legislation at any moment.
What would this mean, for you, the average citizen, who has already shown a disgust toward Obama-directed bailouts, efforts to give taxpayer funds to BP in light of the massive Gulf oil spill cleanup, and the Leftwing-inspired 'cap and trade' legislation, that would increase the average household energy tab for Americans by $2400 - $5000 dollars per year?
1. The proposed energy tax increases would give a competitive advantage to foreign-owned oil interests, such as BP and Hugo Chavez' socialized energy apparatus in Venezuela. This amounts to a back-door bailout of BP and a stealth subsidy of foreign state-owned oil interests--all at taxpayer expense.
2. The proposal would further cripple the U.S. oil industry which has already been hit hard by the oil drilling moratorium Obama and the Democrats slapped on the Gulf of Mexico after the BP oil spill, at a time when the Gulf area is already reeling from the loss of jobs from one of its largest employers--the U.S. oil industry.
3. A further loss of jobs in the energy sector would be inevitable. The new TV ad produced by the National Taxpayer's Union explains the consequences.
4. The most insidious proposal of all, however, is the repeal of part of the U.S. Code that gives manufacturers a tax credit for the creation of jobs. The new law would REMOVE THAT CREDIT FOR THE U.S. OIL INDUSTRY while keeping it for everyone else.
From the NTU report:
"Also under consideration in the U.S. Senate is a repeal of Section 199 of the U.S. tax code, a manufacturers’ deduction, for only the oil and gas industry. The deduction allows companies to reinvest revenue into creating jobs and domestic economic growth."
This amounts to punitive action, singling out the oil industry alone. The U.S. has long encouraged manufacturing and the creation of jobs by giving tax credits to those companies that do so. This proposal, however, would disallow such credits for oil while maintaining them for other corporations.
Who, exactly, is pushing this scheme to cripple America's energy sector and force taxpayers not only to subsidize foreign interests but pay through the nose in excessive added energy costs?
The usual suspects. These include Nancy Pelosi, Robert Menendez, Max Baucus, Harry Reid, among others of the Leftwing.
The far-Left advocacy group, Center for American Progress, supports the heavy taxes on energy due to the fact that it wishes to force the U.S. into a new 'green economy.' Self-avowed Marxist Van Jones, adviser to Obama who now works with the Center, stated in no uncertain terms the end-game.
The U.S. economy has already proved just this month that the Obama plan for America is an abject failure. Unemployment is up, the FDIC is bankrupt, banks are being seized and going under at a record pace, and the housing market just experienced its worst crash since the records began to be kept--a 27% plummet in just one month.
The Obama-Pelosi-Menendez-Reid-Baucus energy tax would be enough to send the economy over the cliff.
Be sure to catch my blog at The Liberty Sphere.
Comments
I signed the TARP "bailouts" legislation in September of 2008.
In 2008, under a Democratically controlled congress a bill was sent by them for Bush to sign. Yes, he signed the bill the Democrats passed.
He signed the bill he requested. - lg
Now let me see! Raising the tax on oil will affect which citizens the most- Oh, the poor!
Most of the poor do not own motor vehicles.
What world do you live in. Go to the poor neighborhood in the district and I think you will find many CARS! Any time you increase the tax on corporations, they immediately pass it on to the consumers. Any politician that recommends increased corporate taxes clearly has no concern for the people, no understanding of economics and is on some very fine weed.
Palin when she was governor taxed Alaskan big oil to the tune of about 10 billion dollars....not too bad for someone who sat as a chairperson on the Alaskan's states oil and gas commission.....but probably not enough considering that between 08-09 the five largest oil companies (Fortune 500) had a combine profit of over 123,000,000,000.00 dollars.....that's right 123 billion ! We Alaskans pay more for our fuel than most of the lower 48, and these cost to us are tax driven through the oil companies back to us at the pumps.....our heating oils have gone up dramatically also even though we are an oil producing state. Barry O.'s shutting down of new off shore oil exploration since the Gulf oil disaster has dramatically affected our state both through revenues and employment. Perhaps someday when we're all running around on mopeds and bicycles and paying 10-15 dollars a gallon for gas and the oil companies share even larger profits people will wake up to this scam.....there's lots of oil...abiotic....the worlds full of it....big oil would have you think otherwise. Many of the new "green" technologies patents have been bought up by big oil or new start up companies created by them.....their just waiting for oil to go off line so they can usher in the new green technologies to us at an even higher price. No matter which way the world moves concerning energy big oil will be part of it !
And you actually think that raising taxes on the oil companies will not be passed on to the consumer and their profits will continue to be large. You clearly smoke some prime weed. By the way, maybe you should check to see how much of that profit is used to discover and produce additional products for the consumer. Banks have a higher profit margin, drug companies have a bigger profit margin and the Federal Government makes 15 cents in tax per gallon of gasoline while the oil companies make less than 5 cents. You are a misinformed whining liberal.
Anonymous......if your statements are directed towards me I suggest that you reread my comment . By no way am I a liberal......fiscal conservative is more like it. 123 billion in profits between 5 fortune 500 oil companies is quite a figure....this is after R. & D. and exploration etc. We all know that there are numerous companies that spend more lobbing dollars on Capitol Hill.....but few have as much power and influence in Washington as BIG oil...our country and the world runs on it ! I'm an Alaskan and support our oil industry in almost every aspect.....but close to 50 billion in profits for one company is substantial.
The Troubled Asset Recovery Program (TARP) was started in 2008. It was started by the US Government to purchase assets and equity from troubled financial institutions and strengthen the sector at the at height of that credit crisis.
The data shows that the program not only achieved its stated objective but also yielded an excellent return to the US government.
The problem is that when the money was repaid, the government did not repay the money and did not pay down the debt. Obama went against the law- everything got fuzzy- . Over a trillion dollars just disappeared into a "slush fund" and no one can explain where it went.
Poor people drive "clunkers" if they do not live near public transportation. Poor people do not all live in cities and they need cars to work or buy food..
Teacherspet...... I remember and agree with you......think it's time to do what Ron Paul suggest.....audit the fed....top to bottom ...find out who the guilty parties are, put them in a real prison and throw away the key !
I usually agree with what you and Anthony say. He is a really good, honest man.
Teacherspet....thanks...... and yes indeed his is a good , honest man....a rarity in these days we live in !
Take off your kneepads, wipe your chins and go get a room.
Some things should only be done in private.
they seem to be doing a scene from "BrokeBeck Mountain" coming to theatres near you this december!
it's call a reacharound
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