Tuesday, May 10, 2011
Democrats in Congress are proposing that we raise taxes on oil companies in order to pay down the debt. Uh oh … they might want to stop their pandering just for a minute to take a look at the figures. According to the energy research firm Wood Mackenzie, should taxes be increased on oil companies by $5 billion a year, that “would result in a $128 billion loss in government revenue and would reduce domestic production by 400,000 barrels per day by 2025,” with an additional 1.2 million barrels per day at risk. Our own Congressional Research Service concluded that, “[T]he proposals also would make oil and natural gas more expensive for U.S. consumers and likely increase foreign dependence.”
But lowering gas prices or paying down our debt isn’t really what this is about, is it? We need to make those evil oil companies pay their fair share and make it look to my constituents like The Community Organizer is doing something about their gas prices! How’s this for fair share: “Between 1998 and 2008, the oil and gas industry paid $1 trillion in total income taxes. That’s in addition to the $178 billion the companies sent the federal government in rent, royalty and bonus payments between 1982 and 2009.” But the progs will still scream that they are still making record profits! The American Petroleum Institute reports, “the oil and gas industry earned 6 cents for every dollar of sales in comparison with all manufacturing, which earned 8.6 cents for every dollar of sales.”
Looks, folks. I’m not one for corporate welfare. But if we are going to have a discussion about lowering gas prices in this country, let’s have an honest discussion about it. Raising taxes on these oil companies isn’t going to give us lower gas prices and it sure as hell ain’t gonna pay to reduce our deficit.
As you have probably noticed I haven't been posting. I am on vacation in beautiful Florida this week and I am off the grid which means I'm not getting emails. If you have stuff for me don't worry I will be back in business next Monday. Visit this week However as Sam I am and Archie will be running things.