Claire McCaskill Hates the Middle Class

Otherwise, why would she be stumping to raise the price of gasoline, oil, and other petroleum products?  I got an e-mail from her office, always good for making smoke come out of my ears.  Some choice excerpts:

If we cannot end subsidies to the five most profitable corporations in the history of our planet, then I don’t know how Congress will make the truly difficult decisions about how to reduce the deficit.

Every year, billions of our tax dollars are given away to companies that made $36 billion in profits during this year's first quarter alone. It’s a practice that must stop. That money could be used to pay down our deficit.

A proposal I announced last week will take away $2 billion in annual taxpayer-provided subsidies from the five biggest oil companies and apply every dime to reducing the deficit. It is the essence of low-hanging fruit. This is the kind of idea that should receive unanimous support in the Senate. It’s common sense.

The big oil companies don’t need the money. Over the last ten years, they've raked in nearly $1 trillion – that’s $1,000,000,000,000 -- in profits. They've broken their own records for the most profitable quarter in economic history several times.

My response:

OK, once you get past the fact that they're not really subsidies...I can forgive that lie for the sake of argument.  I love the idea of doing something to make gasoline prices higher!  Doesn't everybody?  But I don't mind eliminating these tax deductions, as long as we eliminate the HUNDREDS of billions of dollars worth of subsidies for ethanol, wind, and solar, which are nothing but massive boondoggles for programs that would never be able to compete in a free market, simply because they cannot live up to their claims. 

The profits "Big Oil" makes are no different, percentage-wise, than most other companies.  Some companies, such as Apple, have much higher profit margins.  Why aren't you demonizing them?  Why aren't you going after their tax deductions?  What do these oil companies do with their profits?  Do the executives just fill rooms up with cash and roll around in it, like Scrooge McDuck?  No, those profits are used for future exploration and as a safety net for when bad times come--and anyone who lived through the early '80s in the oil industry can tell you, they DO come.  The oil exploration and refining business is expensive. You might have read an article published this week in the Houston Chronicle about Shell's new liquid natural gas drilling and processing platform.  Just building this rig is going to cost them $10 to $12 billion.  That's just one rig.

If two or four billion dollars really concerns you, you could start by eliminating the massively failing organizations created by Jimmy Carter--namely, the Departments of Education and Energy.  But it's not really about saving money, is it?  It's about punishing the companies that provide us with our country's very lifeblood.

I'm sure it'll go straight into the "Deleted Mail" folder.

Senate Dems Lose Vote on Repeal of Tax Breaks for Oil Companies Amid Pain at Pump

Why do democrats keep calling these tax breaks subsidies? Why do they keep neglecting to mention that many other industries in this Country get the same tax breaks? Why do they fail to inform us that they are picking on FIVE oil companies? They aren't demanding that these tax breaks be taken away from ALL oil companies, just the five that they don't like. Why don't they admit that if these tax breaks are taken away the price of gasoline will rise in accordance?

These big five oil companies pay about 40% in taxes, even with the tax breaks they get, billions of dollars. But all the democrats see is the dollar figures, never mind that there are lots of companies that make a bigger profit percentage, just not the dollar amount. The democrats also refuse to mention that out of those profits the oil companies pay for research and development and exploration. It's not like they drill a hole in the ground and oil pops out. They spend huge amounts of money figuring out exactly where the oil is.

And lets also keep in mind that the oil industry employs thousands and thousands of people. Every time obama and his gang of thugs make it harder for oil companies to drill, Americans lose their jobs. The oil industry sufffers every day along the Gulf Coast because obama refuses to allow them to drill.

obama recently said he is going to increase drilling in the Gulf, off of Alaska, and off of California. It's bullshit. It is an election stunt. He has no intention of EVER allowing our Country to become energy independent. Don't fall for it people...

From FoxNews

As expected, Senate Democrats lost a key test vote Tuesday on a bill that would have repealed $20 billion worth of tax subsidies for the nation's five largest oil companies, falling 8 votes short of a win.

The 52-48 vote came as a majority of Americans say in a new Gallup poll that high gas prices are hurting their finances.

Nearly seven in 10 Americans said high gas prices are causing financial hardship for their families. More than half said to compensate, they have made major changes, ranging from shorter trips to cutting back on vacation travel. More than a 1,000 people responded to the poll that has a 4 percent margin of error.

The national average price for a gallon of regular gas is $3.94, according to AAA, and Democrats were looking to exploit that high price with Tuesday's vote.

Last week, Democrats grilled oil executives on the tax breaks that they say are not needed and President Obama announced Saturday he was directing his administration to ramp up U.S. oil production by extending leases in the Gulf of Mexico and off Alaska's coast.

Democrats have been touting a new report by the Joint Economic Committee found that eliminating the tax breaks would reduce the deficit by $21 billion over 10 years and encourage alternative energy and energy efficiency.

"This new JEC report makes clear that there are ways to bring down the deficit without harming our economic recovery," said Sen. Bob Casey, D-Pa., chairman of the committee. "By repealing unnecessary tax breaks to the major integrated oil companies, we can reduce the deficit by more than $20 billion and speed the move to a clean energy economy without impacting prices at the pump."

But Republicans opposed the bill, saying it won't relieve pain at the pump, a conclusion also reached by Senate Majority Leader Harry Reid, who said on the Senate floor Tuesday that "it won't affect gas prices at all."

Reid then went on to say the opposite.

"We have to do something about the exorbitant gas prices, and the best way to start with that is to do something about the five big oil companies getting subsidies they don't need," he said.

Read the rest at the link above...

3 Myths About the Oil and Gas Industry

I don't like the price of gas any more than the next guy, but is there really blame to be placed? Could the price of gas be simply a product of supply and demand? Why does congress feel it is necessary to call executives from oil companies in and talk to them like naughty children? Why does congress think it is correct to deny oil companies the same tax incentives than many other large corporations get? Is it really fair to single out one industry and penalize them for making a profit?

And the oil companies do make a profit, there is no doubt. But their profit margin is less than that of many other companies, like Walmart or Apple. Oil companies pay about 40% of their revenue in taxes, much more than a lot of other industries. Take General Electric for example, last year GE actually got more money back from the government than they paid in taxes. And the oil companies are the bad guys. It sure didn't hurt GE that their ceo at the time, jeffrey immelt, is an advisor to the crooked obama administration.

The "evil" big oil companies make less on a gallon of gas than the federal government, yet they are demonized by the left at every opportunity, and have been for years.

What do you think increasing taxes on oil companies will do to gas prices? I'm no rocket scientist, but I'm betting it would make prices go up by about the same amount as the tax increase.

Maybe if oil companies were allowed to do what they do best, drill for oil, supply and demand would equal out and we wouldn't be paying 4 bucks a gallon to go back and forth to work...

By Bob Beauprez - FoxNews

As voters around the country wince at rising gas prices, panicked Democrats, in a rush to cover the failure of their all-or-nothing bet on the alternative energy industry have started singing a familiar tune – blame the oil and gas industry. Instead of facing the reality of his owned failed policies, President Obama is calling for an end to the "tax giveaways" he claims amount to $4 billion in “subsidies” to the energy industry.

This tactic isn’t surprising given the effect that rising gas prices have on the president’s approval ratings and his obsession with re-election. But, less-than-truthful innuendos and political spin hardly helps America's working families who are getting hammered at the pump.

If our leaders are going to have an honest discussion about energy, it's important to clear up a few rumors, misconceptions and outright falsehoods being perpetrated about the oil and gas industry. Let's begin with three of the more common ones:

1. The industry doesn’t receive any taxpayer funded subsides. None.

2. Rampant speculation and Wall Street tricks aren’t driving up gas prices.

3. The oil and gas industry is not dodging the taxes they owe and withholding “their fair share.”

I'll say it again; contrary to popular opinion and the president's spin, the oil and gas industries do not receive any taxpayer funded subsidies. The tax code does allow them to claim certain tax credits and deductions to encourage continued investment in an industry that is heavily front-end loaded with capital expense.

These are the same kind of incentives available to Coca-Cola, General Electric, Ford, and Microsoft and other companies doing business in the U.S. Or, for that matter, like the deduction for mortgage interest payments enjoyed by homeowners. But, importantly these are tax credits, and markedly different from direct taxpayer cash subsidies like the 45 cent per gallon payment blenders get to put ethanol in fuel mixes.

When businesses invest in America, we all benefit. The oil and gas industry plows about $300 billion into domestic projects per year – that's 75 times more than Obama's phantom "taxpayer giveaways" amount -- and employees over 9 million people. Those are real numbers; not Washington spin, and if government would allow and encourage even more domestic production there would be more jobs and more investment – and more total taxes paid, too.

Another argument that often circulates when gas prices go up is that a phantom class of “Wall Street speculators” is to blame for the increase of prices. In 2008 this school of thought was so persuasive that President Bush commissioned an exhaustive review, via the Commodity Futures Trading Commission, looking into the effect that speculators had on market prices. Their conclusion was surprising, according to The Wall Street Journal, “The agency concluded that speculators—otherwise known as traders—were putting downward pressure on prices. The liquidity they provide helps to smooth volatility.”

Not satisfied with the 2008 study, President Obama recently resurrected this school of thought, even tapping Attorney General Eric Holder to police perceived illegal activity and price gouging. Yet within the presidents’ own administration, the Federal Trade Commission found that the recent spike in oil prices is due primarily to normal market forces, including booming demand from developing economies in India and China and not because of any questionable behavior from Wall Street.

Read the rest at the link above...

House Bucks Obama: Bill Jump-Starts Gulf Oil Production

The cost of going to work every day has doubled for my family. I'm sure you all have the same experience. If gas prices continue to rise, it almost won't be worth going to work. democrats don't understand that out here in the real world, these things have consequences. When the government refuse to allow our oil comapnies to do their job, we all pay for it. We pay for it at the pump and we pay for it in national security concerns. It just doesn't seem like a great idea to me to buy oil from countries that hate us. How exactly, is that good business?

"Drill baby Drill" does make a good bumper sticker. And American companies drilling oil in our own Country is good, sound, energy policy. Buying oil from hugo chavez is poor policy...

by Audrey Hudson - Human Events

Republicans are banking on a measure approved by the House on Thursday to lower gasoline prices by accelerating offshore lease sales in the Gulf of Mexico.

“The situation we find ourselves in today is detrimental to everyone who goes to the pump to fill their cars,” said Rep. Rob Bishop (R.-Utah). “The cost of gas increases, and continues to increase because of the inaction of this administration.”

The de facto moratorium on offshore drilling imposed by President Obama after the Deepwater Horizon tragedy last year has forced the importation of an additional 130,000 barrels of oil a day to make up for the lost production, Republicans say.

Democrats argued that the bill would lead to future environmental tragedies and insisted that more oil is being safely produced under President Obama than in President Bush’s administration.

Republicans countered that Americans are expected to spend an additional $700 on gasoline this year.

“The administration’s strategy is to cut the standard of living … and beg Saudi Arabia to be nice to us,” Bishop said.

The legislation is the first of several measures Republicans will act on in the next week, and imposes strict time lines on the Obama administration to sell leases in the Gulf of Mexico and offshore from Virginia.

President Obama has since lifted the moratorium, but few permits are actually being approved, Republicans said.

“Unfortunately, the administration turned the tragedy into a catastrophe … one that destroys jobs,” Bishop said.

HR 1230, the Restarting American Offshore Leasing Now Act, passed the House by a vote of 266 to 149, with 233 Republicans and 33 Democrats supporting the measure.

The Office of Management and Budget said in a statement that it opposes the legislation because it would undermine environmental protections and workplace safety.

The key measures are sponsored by Rep. Richard “Doc” Hastings (R.-Wash.), chairman of the House Energy Committee. The House on Tuesday will vote on HR 1229, which ends the moratorium and establishes new safety reviews.

“Continued tensions in the Middle East serve as a reminder that increased American energy production is as much of a national security issue as it is about jobs and lowering gasoline prices,” Hastings said.

“The United States has the most energy resources in the world and the American people are demanding that we utilize them to lower energy prices, create jobs, and make American less dependent on unstable foreign energy,” Hastings said.

Democrats said the measure reinforces the “myth” that America can drill itself out of foreign dependency.

“ 'Drill baby drill’ may look good on a bumper sticker, but it is not a sound energy policy,” said Jared Polis (D.-Colo.).

“This does not make filling up at the pump any more affordable to Americans at all,” Polis said.

Read the rest at the link above...

Why won't our economy recover?

A big part of our economy revolves around disposable income. People use the money they have left over after the bills are paid, disposable income, to eat at McDonald's, go to the movies, buy flat screen TVs at Walmart, take a vacation, stay at hotels, etc.

Every one of these activities stimulates our economy. These activities enable places like McDonald's and Walmart to hire more help, which also helps our economy grow, and results in more tax paying citizens. Those additional tax paying citizens spend their disposable income, further growing the economy.

When gas prices go through the roof, like they are now, take a guess at where people spend the income they would otherwise use to eat out or buy other goods and services. You got it, at the gas pump. In an economy that is already in the toilet, the effects are even worse.

So while obama sits around with his thumb in his ass, gas prices continue to rise and our economy continues to decline. Until the oil companies in this Country are allowed to do what they do best, drill for oil, it will be impossible for a recovery to take place.

As far as the profits of the evil oil companies are concerned, keep this in mind, the government makes more on a gallon of gasoline than the oil companies. Also, unlike obama's pet company, GE, the oil companies actually pay taxes, a lot of taxes. Some oil companies pay more in taxes than they make in profit. And don't forget that oil companies pour much of their profits back into the company in the form of exploration, research and development.

For a further look at oil company profits, see the post by Joe Texan below.

Oil "Subsidies" and Stupid Liberal Petitions

I got this petition in my e-mail today:
End Big Oil Subsidies!

Some of the crap from the e-mail:

"Dear Friend,

As Americans continue to struggle with outrageous, unstable gas prices, big oil companies continue to benefit from them.

Exxon Mobil announced Thursday a first-quarter profit of $10.6 billion — a 69% increase from last year, and a number so astronomical, Exxon executives felt the need to issue defensive statements in advance.¹ Also unveiling massive earnings were Shell ($6.3 billion, up 30%), ConocoPhillips ($3 billion, up 44%), and of course, BP (7.1 Billion, up 16%). In all, the five largest oil companies have reaped nearly $1 trillion in profits in the last 10 years.

But more outrageous than jaw-dropping oil company profits, is the fact that our government actually rewards these companies with even more of our money for maintaining this disastrous system — to the tune of $4 billion a year in tax credits and subsidies. It's time for that to end." 

My response:

"Big oil, such as Exxon/Mobil, Royal Dutch-Shell, BP, etc. doesn't get these subsidies!  They are specifically excluded from receiving these tax deductions for depreciation (not subsidies, actually).  Only domestic producers, not the big multinationals, get them, so naming Exxon/Mobil, ConocoPhillips, and BP is either a deliberate attempt at misdirection or an indication that you don't know what you're talking about.  I don't oppose eliminating that $4 billion in tax deductions for depreciation as long as we also eliminate the $100 billion in subsidies the green energy scammers get. 

Also, in the world oil markets, the "Big Oil" companies are very small players compared to the nationalized oil companies of Saudi Arabia, Russia, and Venezuela, and have minimal influence on oil prices.  So you're barking up the wrong tree.

The current prices of oil are caused by the same thing that is causing the price of other commodities, such as gold, silver, and cotton, to skyrocket--the weak dollar caused by the economic policies of the Obama administration.  So why not create a petition to fix the REAL problem?"