Republicans Block Extra Taxes On Oil Companies

June 10, 2008

Click to Read

Republicans Block Extra Taxes on Oil Companies
Senate Republicans blocked a proposal to tax the windfall profits of the largest oil companies, despite pleas by Democratic leaders to use the measure to address America's anger over $4 a gallon gasoline. The Democratic energy package would have imposed a tax on any "unreasonable" profits of the five largest US oil companies and given the federal government more power to address oil market speculation. Republicans argued that an increased tax would increase imports.

Comments

62 Comments

Cassandra57 4 years 49 weeks

Sorry, but I didn't want to ramble on too long, so I decided to address different issues separately. Regarding alternative energy sources, every time the government gets into market-related issues, we have problems. The wanted to encourage the use of ethanol. Rather than wait for methods which *don't* involve food crops, they pushed forward. Now corn is sky-high and tortilla prices in Mexico are causing problems for the poorer people there. We need to remember that everything is inter-related. Corn-based ethanol is also not a cost-effective substitute; last I heard it costs more per gallon than gasoline (but that may have changed with the recent price spikes). Which leads me to the cut in subsidies for alternative energy companies. To be effective, alternatives must be cost-effective. If we subsidize and encourage methods which are not, we are in fact diverting resources from other research which may ultimately be a better solution. As for individuals' vehicles, I don't want the government telling me what I can and cannot drive. Now, I drive an older, very sensible 4-cylinder sedan. But who has the right to tell me I can't drive an SUV? I hear Detroit has a new full-sized Tahoe hybrid which gets about 21 mpg. Which government bureaucracy will grant me absolution and give me permission to purchase a politically-incorrect vehicle? By what criteria? Must I have at least three children? What about my son who is still 15 and is already 6 feet tall? Do I have to stuff him into a Smart Car? America is all about freedom. If I want to spend my disposable income on car and fuel instead of clothes, pets and restaurant meals, isn't that my prerogative?

Cassandra57 4 years 49 weeks

It's very basic math that any cost increase a company faces must be passed on to the consumers. The books have to balance at the end of the accounting period. This includes taxes as well as increases in the cost of raw materials. I just heard a caller on talk radio this morning. Gas is higher in California than anywhere else in the country. The reasons include: (1) The included sales tax is a percentage, so it goes up as the cost of gas increases. (2) Various other taxes applied by the state. (3) California has legislated a special formula. This means boutique blending, *and* (I didn't know this before) It cannot travel through the same pipelines as other formulations. (4) There are only a couple of refineries equipped to make this special blend. This limits the rate at which it can be produced. Anything that reduces the supply will, by definition, drive up the cost. This includes a lot of liberal sacred cows: (1) Restrictions on refineries and the building of new ones. (2) Restrictions on drilling sites. Technology has improved tremendously, so many more places are now economically viable sources. Broadening the issue to energy supplies in general, we should have increased the use of nuclear energy years ago. Unscientific superstition and fear have stood in the way. Even the French, not generally recognized as cutting-edge, high-tech folks are using a lot of nuclear energy.

mymellowman 4 years 49 weeks

Oh, I also feel it is important to note that I believe there is an even bigger difference between tax cuts for the rich and tax cuts for corporations. 1. The Rich: I feel that we should all be held to the same regards in way of taxes (note: I am for the Fair Tax.) I'm not a "Let's give tax cuts to the rich" person as much as I believe we all should pay are fair share. I honestly do not know enough about upper level taxes as I am so far from there, but I have no issues with the upper class getting cuts if it brings what they are paying in line with the rest of the country. Just because someone has more money doesn't mean that they should have to support more of the country (percentage speaking, not dollar speaking.) Additionally, I do believe there is a ratio of taxation versus investment and that if the upper class are taxed too high that they will not invest, but I do not know the exact ratio. 2. Corporations: In this sense, I do believe in lower taxes for our Corporations. When we tax most corporations, most of this money gets passed down to the consumer of the goods or services of the company. We are not taxing the company, we are taxing ourselves. Lower taxes on corporations will not only help the companies, but will also help the average person in the process.

mymellowman 4 years 49 weeks

Hey all, sorry to pop back in here so late, but I had to drop a little something in here for Jillness (and thank undave for covering for me): "According to a 1996 study[25] from the libertarian think tank Cato Institute: * On 8 of the 10 key economic variables examined, the American economy performed better during the Reagan years than during the pre- and post-Reagan years. * Real median family income grew by $4,000 during the Reagan period after experiencing no growth in the pre-Reagan years; it experienced a loss of almost $1,500 in the post-Reagan years. * Interest rates, inflation, and unemployment fell faster under Reagan than they did immediately before or after his presidency. * The only economic variable that was worse in the Reagan period than in both the pre- and post-Reagan years was the savings rate, which fell rapidly in the 1980s. The productivity rate was higher in the pre-Reagan years but much lower in the post-Reagans years." Reagan is a great example because he is the closest to a true conservative that we have had in office in quite a long time. Furthermore, he was the first to truly use Supply Side Economics in a large manner. (Some would bring up Kennedy, it's a debate that I believe Reagan way overshadowed in use, but I will make a lil side note there.)

Great Sommelier 4 years 49 weeks

Ah, understand I do :yoda:

hausfrau 4 years 49 weeks

Sy - When Citizen PMed me about being commenter of the month in April I brought it up to her. She said she would talk to the geeks about it but I hadn't heard anything so I just assumed that it couldn't be done. GS - I don't do post and subscribe because I hate getting all that email!! :)

syako 4 years 49 weeks

I just posted this today: http://teamsugar.com/group/31494/blog/1699050 Hopefully the Team will listen and change it!

Great Sommelier 4 years 49 weeks

I mean "Post & Subscribe"?

Great Sommelier 4 years 49 weeks

Don't y'all get the email alert things?

Jillness 4 years 49 weeks

I agree, Cabaker! I really like the "new posts" info. Very helpful.

hausfrau 4 years 49 weeks

Don't you guys hate it when these little stories get more comments than some of the bigger ones?? It drives me crazy because it doesn't say how many new comments so I end up checking needlessly! So inefficient!

Jillness 4 years 49 weeks

Thank you, Em. That was very sweet of you. I try to be respectful (but sometimes I fall off the wagon) because at the end of the day I think most people agree on a lot of things...we just have different ideas of how to get there.

Great Sommelier 4 years 49 weeks

Em, are you following me? I'm flattered! :wink:

em113 4 years 49 weeks

Jillness, I just wanted to pop in and say that while you clearly don't have the respect of one troublemaker, I really respect the way you deliver your opinion. I was reading your posts over in another thread and they were well articulated without being nasty or making generalizations. Personally, I know when I'm pissed off I can't usually do that. So bravo and keep it up.

Great Sommelier 4 years 49 weeks

Me thinks thou dost protest too much :wink:

Jillness 4 years 49 weeks

I never called people sheep. Big difference.

Great Sommelier 4 years 49 weeks

Do you want to be pot or kettle? I like kettle.

Jillness 4 years 49 weeks

UnDave, many say that Reagan's economic plans were what caused the Recession during Bush Sr.'s term. Great, instead of generally insulting people, why don't you simply point out the specifics of where you disagree. It doesn't have to get personal just because you disagree with someone on policy ideas.

Great Sommelier 4 years 49 weeks

People are so uninformed and sheeplike. Sigh.

UnDave35 4 years 49 weeks

It was working great in the 80's. Then a new pres took over in the early 90's and hung employers out to dry. From Glenn Beck - When George Bush enacted the tax cuts, the government predicted that they would only bring in roughly 330 million in taxes the first year. They actual tax increase was double to 700 million for the year. Lower the taxes, increase the income. It's backwards thinking like that that has kept the economy affloat.

Jillness 4 years 49 weeks

I would love to see where cutting taxes for big companies leads to increase in job opportunities. Conservatives have been spouting "trickle down economics" for decades now, and it has yet to work.

stephley 4 years 49 weeks

We'd have to end the war and bring stability to the Middle East to bring oil prices down at all. I also don't think taxes or anything else congress could do will have much of an impact. So, I would support a tax on the oil companies windfall profits; tax breaks and other incentives for developing sustainable alternative energy sources and conservation; incentives for developing and using efficient mass transit; fees and fines for excessive industrial usage and pollution; rebates for buying fuel efficient cars and fees on guzzlers (unless the buyer has a proven need for the bigger car); support local and organic food usage; incentives for greening homes and offices with solar and energy saving technology; incentives for building new green homes and offices... Any and everything that changes the way we think about energy and how we use it.

bellaressa 4 years 49 weeks

So what do you all propose we do for this crisis?

UnDave35 4 years 49 weeks

Actually, drilling allows us to be energy independent. Drilling would bring us to that target date more quickly.

stephley 4 years 49 weeks

Good luck with that. Personally, I'm against any more drilling and would rather see us set a target date for independence - more drilling just lets us delay that.

Link Love

62 Comments

You Might Also Like