The Futility Of A New Oil-Industry Tax

IBD Editorials ^ | September 1, 2009 | BERNARD R. WEINSTEIN

[Kaslin]

The debate over medical care has commanded most of the public's attention this summer, but another important domestic policy issue is quietly taking shape — new energy taxes.

When lawmakers return to Washington, the Senate will take up legislation that would impose $31.5 billion in new taxes on America's energy producers.

These taxes will harm every aspect of our domestic energy industry, from producers to refiners and every supporting business in between.

They will not only cost American jobs. They will also raise global carbon emissions and reduce U.S. energy independence — in opposition to stated goals of the administration. Here's how:

One proposal would eliminate the domestic manufacturing income deduction for refiners, known as Section 199, while letting all other manufacturers (carmakers, drug companies) continue using it.

This new tax would further reduce America's refining capacity — which supplies only 84% of domestic demand. It would also give a competitive advantage to foreign refiners, who would be unaffected by the provision.

Reducing American refiners' ability to bring products to market will transfer more American jobs and revenue overseas — the last thing our struggling economy needs.

Higher taxes on U.S. refineries will also lead to greater carbon emissions.

First, they will shift the activity abroad to less-efficient, higher-polluting plants.

They will also drive domestic power generators away from cleaner fuels like natural gas.

[Kaslin]

[freekitty]

What the heck is wrong with our Congress? This country has been super good to these idiots and look at how they repay our country.

They are so gone.

[Kaslin]

Not only do they want to drive business out of the country, and make it into a third world country. Tthey want to destroy this great nation

[sionnsar]

What the heck is wrong with our Congress? This country has been super good to these idiots

That's the problem. Lack of discipline. "Spare the rod..."

[sionnsar]

They want to destroy this great nation

If they can live fat off the carcass, what's it to them?

[Kaslin]

nothing

[freekitty]

Yep and a wee wee weenie President.

[bitterohiogunclinger]

It’s time to take our country back, well, it’s past time. I’m proposing a nationwide movement to eliminate “tax guzzling” politicians.

[dalebert]

what about off shore drilling ....chavez is doing it.

[sionnsar]

Yep and a wee wee weenie President.

Going on a vacation from a vacation, I'd have to say he's probably a bit "wee wee'd".

[freekitty]

LOL

[freekitty]

I am with you.

[freekitty]

Exactly

[freekitty]

What a waste this wee wee weenie President has turned out to be.

[Kaslin]

Well, we knew it, didn’t we?

[Kaslin]

[Kaslin]

We should not just do offshore drilling, but also Shale oil drilling

[freekitty]

Yep

[dalebert]

i know ....and use other resuorce too. i agree..but no one is talking about it..we just gave chavez 2 billion for off shore drilling....but we cant do it