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Posted on 05/01/2011 6:31:28 AM PDT by ScaniaBoy
One of the most interesting points that Governor Palin brought up in her interview with Brett Baier last Friday was that Obama’s proposal to decrease or eliminate the $4 billion in subsidies for oil and gas companies would negatively impact independent oil producers and explorers rather than Big Oil. It was interesting because I haven’t heard any other high-profile Republican articulate that one of the reasons why we shouldn’t just go along with Obama’s proposal to end the oil subsidies is because independent and smaller oil companies, rather than Big Oil, will be hurt if these subsidies are taken away. Quite frankly, Brett Baier missed an opportunity to go deeper into this issue during his interview with the Governor as she may have just come up with the best argument our side can use to fight Obama’s proposal to take away the $4 billion in subsidies.
One of the reasons why other Republicans haven’t used Governor Palin’s argument is that they simply do not understand the oil and gas industry. They don’t have the same level of experience that Governor Palin does in dealing with oil companies and probably don’t comprehend that tax incentives and subsidies don’t impact all oil and gas companies the same way. Unlike Governor Palin, hacks like Romney and Pawlenty, con-men like Trump and Huckabee, and space cadets like Bachmann have been unable to explain how the oil industry works in a way that goes beyond trite and tired talking points.
Today, Democrat Martin Frost effectively conceded that Palin’s analysis of the oil industry was correct. Here’s the video courtesy of PalinTV (Go to original article to view video. ). Smart Republicans will start using the argument that Governor Palin introduced during her interview with Baier about the deleterious impact that eliminating such subsidies will have on independent oil and gas producers. Please help us spread the youtube video and this post as the liberal media and certain elements of the conservative media will try their best to ignore what we have presented.
Palin: As for the government subsidies that we’re hearing Obama flirting with right now in wanting to decrease those or eliminate those, we’re only talking about four billion dollars. Compare that to the fourteen trillion dollar debt that he, our President, has certainly contributed to and four billion dollars is a drop in the bucket and he shouldn’t assume that the four billion dollars is going to affect Big Oil. No, it’s the independent explorers that we want out there with their entrepreneurial spirit and their manpower and their job creating ability to be out there exploring and then responsibly exploiting and extracting our god-given natural resources.
Frost: I’m a supporter of the President’s. I’m concerned that he’s going to lose credibility on this oil and gas issue because he’s not telling the truth entirely. What he is saying is that you need to eliminate four billion dollars worth of tax breaks for major oil companies because major oil companies have obscene profits. The problem with this is that one of the big tax breaks that he’s citing -intangible drilling costs- excuse me -percentage depletion- was repealed by Congress, excuse me, in 1975, 36 years ago, as it affects major oil companies. The only ones that get percentage depletion anymore are domestic independents who drill most of the wells in the United States and employ four million people. Now the press doesn’t do a very good job of covering oil and gas tax issues. They don’t understand them. But if the press ever picks up that the President is not telling the truth about the depletion allowance, that it doesn’t go the major oil companies, he’s going to have additional problems, I believe, in the polls.
Palin:Again, you have to remember that President Obama, and I’m going to say this with all due respect to the office of the Presidency, he doesn’t know what he’s doing when it comes to energy. He does not know, as I just pointed out, that the four billion dollars that he thinks he’s gonna stick it to Exxon, BP, Conaco Phillips that no, it’s going to be the independent producers, the explorers that we want out there creating jobs that are going to be hit with an end of subsidy.
PING!
(Sarah scores again! But of course all sensible people know she just talks so much fluff. /heavy irony.)
Sarah Palin exhibits her superior intellect once again.
It’s a complete travesty that the media have managed to smear her successfully as somehow “stupid” or “ignorant”. Their success instead shows how stupid and gullible many Americans have become.
Palin ‘12!!!
Governor Palin brought up in her interview... that [Zero]'s proposal to decrease or eliminate the $4 billion in subsidies for oil and gas companies would negatively impact independent oil producers and explorers rather than Big Oil... independent and smaller oil companies, rather than Big Oil, will be hurt if these subsidies are taken away.
I agree, but remember that they did the same thing to Reagan, and in the end he was able to use their lies against them to help him make his presidency such an effective one.
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Someone should e-mail this to Boehner.
It is quite a put down, but Zero and the DIM and GOP Ivy-league establishment won't understand a word of it.
It is high time to put the kibosh to all subsidies. A very slippery slope indeed when people and organizations start carving out ways to flim-flam the taxpayer.
TRUST!
Which candidate other than Sarah do you trust?
You've got a point there. (...as Addison de Witt said*.)
However, the abolition of subsidies will not - as stated by Zero - hit "big oil", but the small independent producers (for the reasons stated by Congressman Frost).
Whether that is the best thing to do in the present situation has to be analyzed, and one would have to study the entire proposal to be able to come to an informed decision - just as Gov Palin stated in her interview with Breier.
*Sorry, just kiddin'
Stay tuned for the vague references to ‘cutting subsidies’ to oil companies. O.K., let’s talk specifics. Define , in detail, the tax structure applicable to oil. Naw. Never happen. Will they cut the depletion allowance? If so, will this apply to royalty owners, eg, the farmer who leases his land. This is very complicated and must be discussed. I tell you now, most small exploration companies depend on outside investment to spread the risk. The risk in drilling a well is extremely high. Over 75% of all wells drilled are completed as dry holes. This is a fact. Check it out. We are about to lose the base of our domestic exploration companies, the small 5 to 15 employee companies. The ‘big’ boy companies (Exxon Mobile, etc) do NOT go after the small stuff. Take Michigan, ranked 17th in domestic production. The big boys have been gone for 10 years, off looking for giant fields in other parts of the world. I am fortunate to have retired from the oil business after 42 years service. It was FUN and we did it right.
Agree. Defund all collectives. The U.S.A. becomes financially solvent and we become very low-taxed prosperous/productive citizens in a country which acts as a beacon for individual liberty.
Honestly! None. I like Cain but I’m not sure if he would stand up to Big Business, or be serious about financial regulation (ending the Fed). I know Palin will stand for the right of the people, she already has.
Sure I will agree with that if we eliminate corporate income taxes entirely.
The tax code is used to politically punish or reward business.
It is about time to educate the public that there is no way to really tax business. Government is actually taxing people. It is taxing the consumer of the goods or service supplied by the business or it is taxing the owners of the business.
I am totally opposed to making businesses tax collectors. I find it morally repugnant to add to the burdens of a businessman the job of tax collector. For this reason I am totally opposed to sales taxes of any kind. This includes the value added tax that some on this forum find so attractive as a replacement to the federal income tax.
The flat tax is the simplest and fairest solution to financing the government.
bttt
Governments don't subsidize oil companies, oil companies subsidize governments.
They did the identical thing to Reagan and he still won. We didn’t even have the ability to go on-line and get the real news...we had to wade through the medias’ garbage...and in spite of that Reagan was elected President 2 times. When you have gas prices at $5.00 a gallon, food going through the roof, and inflation...people will ignore the media garbage on Sarah as we did with Reagan...and elect her as President. Yippee!!!
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