Taxing domestic oil will increase imports

LA Times ^ | October 22, 2006 | Michael Helperin

[thackney]

Proposition 87 is a foolish idea because it will increase the ratio of imported to domestic oil and the total amount of foreign oil we import ("Oil Giants Put Energy Into Other Resources," Oct. 8).

Drive up Stocker Street in Windsor Hills, Freshman Drive in Culver City or Redondo Avenue in Long Beach and see a remarkable sight: oil wells.

Unsightly they may be, but they have a hidden beauty, for they are neatly and quietly drawing from the earth a portion of the oil we Californians use every day.

Proposition 87 would tax this oil produced by, for and in California, but it would not tax imported oil.

As any freshman economics student can tell you, that would quickly result in less oil being produced here.

Thus it would very likely increase the quantity of oil we import.

California should be striving for energy independence, not stifling local energy producers.

Investors in alternative energy, such as myself, might benefit slightly from Proposition 87. But we all will surely pay...

[fhlh]

Is this what California prop 87 really does????

if so... I mean, I knew California was full stooopid idiots... but this might propel them to stooopid f'n idiots status :)

[100-Fold_Return]

LA Slimes is against this--THEN IT MUST BE GREAT FOR AMERICA!!!!

Git 'er DUN!

[thackney]

Wow, you thinking increasing taxes is a good idea?

[100-Fold_Return]

Consider the source--we have no idea what is exactly being proposed. Ya know, they've lied before...

[thackney]

Proposition 87

Alternative Energy. Research, Production, Incentives. Tax on California Oil Producers. Initiative Constitutional Amendment and Statute.
http://www.ss.ca.gov/elections/vig_06/general_06/pdf/proposition_87/entire_prop87.pdf

[gcruse]

Without knowing the details, I'd vote no.
If there's to be a tax to be used to bolster sources alternative to oil, it should put on gasoline at the pump.
To punish domestic producers when the benefit is for all energy consumers is counterproductive. Let the users pay.

[calcowgirl]

Prop 87 is sooooooooo bad, even the LA Times hates it.

If that isn't enough for you, know that Democrat moneyman Stephen Bing has poured $40 million into passing this and the biggest faces on the Ads are Bill Clinton and Al Gore. Hate it yet?

Okay... down to the basics--they want to take money from oil producers ($4 billion in taxes) and give it to their preferred wind, solar, and some whacko green companies (in which they probably have ownership) to study alternative energy sources.

Is that enough to just vote NO?

http://www.freerepublic.com/focus/keyword?k=prop87

[flashbunny]

well you could actually read the proposition itself before posting, but that would probably be too much work for you.

[Signalman]

In this case, the Times is correct. Prop 87 will raise taxes on the oil companies, and they will raise prices on gasoline. Vote no on 87.

Hey, the Times recommened Arnold too. Call me cynical but it seems that lately, they have been making an effort to get back their conservative readers, like me, who terminated their subscriptions.

[Nathan Zachary]

I'm suprised that California hasn't figured out a way to tax air yet.
Mayb a formula based on the Cubic Inch displacement of your car muliplied by the number of miles you drive a day divided by number of registered passengers....

I know. Don't give them any ideas...

[greasepaint]

tax on aviation jet fuel for internvtional flight is zero.
not a penny.

................
more gasoline tax...f^^^ you

[doc30]

I heard aboutn this proposition. Not only does it tax oil, but it also prohibits the tax from being passed onto consumers via higher prices. They get taxed and can't incorporate this new expense into their pricing structure. I guess California doens't want gas for their cars after all.

[thackney]

tax on aviation jet fuel for internvtional flight is zero.

There may be no direct tax paid on the final product. But there is a whole bunch of taxes and royalties paid before it ever got to the final dispensing pump. Crude oil pays a huge amount when measured as a percentage. Refining and transportation also pays taxes.

[goldstategop]

Logic tells you the last thing we ought to do is INCREASE our dependence on foreign oil. Yet liberals want to do that in the hope we'll switch to alternative fuels. Its not gonna happen if we tax domestic oil but not imported oil, as Proposition 87 does. Prop 87 is a hoax: it promises to spend the tax money raised on alternative fuel development but in reality it will just make the cost of driving more expensive for every one and fund an unneeded and expensive new state bureaucracy. Since its endorsed by Bill Clinton and Al Gore, you know in your heart its really THAT bad. Vote NO on 87!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[goldstategop]

There's NO guarantee it will ever lead to alternative fuels getting on the market. But it will make its venture capitalist backers rich and the rest of us poorer. Gas prices have dropped in California. Give me ONE good reason why we ought to raise them back up. Prop 87 isn't that one.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[goldstategop]

That provision is unconstitutional. The folks who wrote it are political demagogues hoping to con voters with a promise that can't be kept. They lie to you from the outset: that's all you need to do to vote against Prop 87. Tell them to take their snake oil and peddle it elsewhere.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[goldstategop]

Excellent point. There will higher costs of renting an apartment, a hotel room, buying a car, furniture and groceries. Take an airplane flight and booking a hotel room. If the oil companies can't pass on the costs of the punitive tax onto consumers, the latter will pay more elsewhere. One way or another the bill is going to be paid by someone. There Ain't No Such Thing As A Free Lunch.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[RightWhale]

NYMEX sweet crude is now 58.70 down .63, which is quite a bit higher than it left off Friday, but NYMEX is now running the Dec contract in its top slot rather than Nov which is retired.

[Carry_Okie]

Proposition 87 is a foolish idea because it will increase the ratio of imported to domestic oil and the total amount of foreign oil we import...

What makes this idiot think that the backers of Prop 87 don't know that it will increase oil imports?

Good grief.