So let’s take away the subsidy (definition below) the government provides to the evil oil companies. There’s a problem though. The government doesn’t do that. They do, however, provide them with tax deductions. You know, the kind that allowed GE to pay less in taxes than the average welfare recipient. Here’s a summary of the tax deductions the oil companies are afforded.
1. Intangible Drilling costs — this is merely a deduction for 100% of the exploration costs in the year they are spent. It’s only 70% for big oil companies in the first year.
2. Foreign tax credit — allows companies to offset taxes paid to other countries.
3. Domestic Manufacturer’s Deduction — allows a deduction of 9% of income earned from anyone manufacturing, producing, growing or extracting in the United States except for oil companies. They only get a 6% deduction.
4. Depletion allowance — available to oil and mining companies and is a deduction of a percentage of the gross income from a well or mine to take into consideration that the well or mine will eventually run dry. Not available to companies that refine and market it, i.e., the big oil companies.
5. LIFO — last in first out is an accounting practice that provides that companies sell the most recently acquired inventory items first. Profits are reduced by the cost of the goods sold, and the higher the cost the lower the taxable profit. Companies in industries experiencing rising prices generally prefer LIFO accounting.
6. Expensing tertiary recovery injectants — companies are currently allowed to treat as an expense the cost of the stuff they pump into the ground to break loose trapped oil and gas.
7. Geological and Geophysical costs — small companies can expense exploration costs over two years, big oil companies can do it over seven years.
8. EOR and Marginal well credits — apply only when oil prices are much lower than they are now, $42 for EOR credit and $27 for marginal well credit, and were implemented to encourage production when oil prices are low.
So…. bipartisanship, what does it mean & why it so great? Why is it so bad to be partisan? A partisan is one who supports or adheres to an ideal, group, person, etc. What wrong with that? Seems to me everyone is partisan in one-way or another. Bipartisanship, in my opinion, is just code for, I really don’t stand for anything & I’m certainly not willing to fight for it. History must be awash with great bipartisan agreements. I just can’t think of a single one off hand.
It’s funny how the term never comes up until the democrats lose their majority. Imagine if a conservative (notice I didn’t say republican) had said this. “ We don’t mind the democrats joining us. They can come for the ride, but they gotta sit in back.” That’s not very bipartisan. The actual quote was attributed to Obama before the last midterm elections when the dems controlled both houses & the oval office. To get the real quote, just substitute the democrats for republicans.
I follow this stuff pretty close & I don’t recall a single call for bipartisanship from 2006 to 2010. Prove me wrong.
Today, that word can be defined, as conservatives must compromise their values & position. Never the other way around.
The Following is then Senator Barack Obama’s Senate floor speech in March, 2006.
He voted against raising the debt ceiling as did every other major democrat hack at the time!
“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.”
“Over the past 5 years, our federal debt has increased by $3.5 trillion to $8.6 trillion.That is “trillion” with a “T.” That is money that we have borrowed from the Social Security trust fund, borrowed from China and Japan, borrowed from American taxpayers. And over the next 5 years, between now and 2011, the President’s budget will increase the debt by almost another $3.5 trillion.”
“Numbers that large are sometimes hard to understand. Some people may wonder why they matter. Here is why: This year, the Federal Government will spend $220 billion on interest. That is more money to pay interest on our national debt than we’ll spend on Medicaid and the State Children’s Health Insurance Program. That is more money to pay interest on our debt this year than we will spend on education, homeland security, transportation, and veterans benefits combined. It is more money in one year than we are likely to spend to rebuild the devastated gulf coast in a way that honors the best of America.”
“And the cost of our debt is one of the fastest growing expenses in the Federal budget. This rising debt is a hidden domestic enemy, robbing our cities and States of critical investments in infrastructure like bridges, ports, and levees; robbing our families and our children of critical investments in education and health care reform; robbing our seniors of the retirement and health security they have counted on.”
“Every dollar we pay in interest is a dollar that is not going to investment in America’s priorities.”
I just saw the lastest poll that the public supports our fearless leader Obama on the debt issue. It’s a crock. It’s a skewed poll and it’s done on purpose. When you see a political poll you must first look at whom they polled. If the poll is of adults (this one was),
walk run away. It’s bogus. Everyone that knows anything about political polls know if you want to skew a poll toward anything liberal or progressive, poll adults. The only polls that are at all accurate and honest are those of both registered & likely voters, equally split between the parties. They must not only be registered but are definitely going to be voting. In politics, if you’re not going to vote, you don’t matter. That’s a fact! It’s a fact I agree with.
If we don’t raise the debt ceiling we will default &
the world will end. Everyone panic & run around in a circle! I don’t
know about you, but I’m getting very tired of being scared into submission by
every so-called crisis that pops up. What’s most frustrating is that very few
if any real conservatives on radio or TV are either informed enough or have the
courage to tell the truth. Here’s the truth. According to the White House OMB
(Office of Management & Budget), the total revenue coming into the federal
government (taxes & fees) is over 2.5 trillion dollars. That’s a lot of
cabbage but evidently not enough to run a country. From the same source, the
interest on our debt is about 251 billion. Now I’m not a math whiz but if you
subtract one from the other, that still leaves them with over 2 trillion. You mean to tell me we can’t find a way to
operate on over 2 trillion dollars? Stop buying into the hype. There are no
crises. Actually, let me rephrase that. When the government says panic, don’t.
When they say don’t panic, do.
unemployment number. Does it bother anyone else to never hear the actual
rate of unemployment in this country? Talking heads on both sides parrot the
same incomplete figures. Incomplete? What do you mean incomplete? We hear the rate is hovering around 9%.
That’s bad but not at all accurate. It’s a lot worse. The government has 6
unemployment classifications (accounting gimmicks). Yes, I know what you’re thinking. Unemployed is unemployed,
right? Not so fast. According to the
Feds, you just may not be unemployed enough or too unemployed. Make sense
now? Anywho, these classifications are
U-1 through U-6. The higher the number the worse & more realistic the
unemployment figure. That 9% figure we hear of is the U-3 number. It doesn’t
account for those who have stopped looking, the discouraged, the underemployed,
etc. I guess those folks are in the too unemployed to be counted category. Does
this sound nuts to you? The real rate of unemployment in this country is well
above 15% & has been that way for quite a while. Is it too much to ask for
country; Release the Strategic Oil Reserves.
Another crisis averted by our fearless leader. Release 60 million
barrels of oil from our emergency stash. Wow! That’s a lot of oil. That will
surely bring down gas prices. We’ll be swimming in it. Hooray for Obama! Why
didn’t anyone think of such an easy solution? Well, it could be that anyone
that bothered to become informed would know that 60 million barrels of oil is squat.
The United States uses about 20 million barrels of oil per day. Ok, do the
math. Getting the picture? Could this be another cheap political stunt? Why
yes…yes it could. It’s actually much worse than just a stunt. One with actual
consequences. You see; our oil reserves are stored in 4 massive underground
salt caverns. Ok, so what. Here’s what. These caverns are quite unique. They
can’t be found just anywhere. That means there’s a finite amount of them. Well,
these caverns can only be drained & filled up to 6 times before they are
unusable. Rather high price to pay for a cheap trick.