Posted on 05/17/2011 2:24:49 PM PDT by jazusamo
(CNSNews.com) – Democratic leaders in both the House and Senate continue to make misleading statements about the effect their plans to raise taxes on oil companies would have on gas prices.
“We have to do something about the exorbitant gas prices, and the best way to start with that is to do something about the five big oil companies getting subsidies they don't need,” Senate Majority Leader Harry Reid (R-Nev.) said on the Senate floor on Tuesday.
Democratic Congressional Campaign Committee Chairman Rep. Steve Israel (D-N.Y.) was even more direct. Appearing on MSNBC’s Jansing & Co., Israel said that Congress could lower gas prices by eliminating tax write-offs for large oil companies.
“There’s lots of things we can do [to lower gas prices],” Israel said. “We can start by eliminating the $4 billion subsidy that big oil companies get.”
Democratic National Committee Chair Rep. Debbie Wasserman Schultz (D-Fla.) said May 6 on Fox News Channel’s Fox & Friends that the “first step” to bringing down gas prices was to eliminate tax write-offs for oil companies.
“The bottom line is that we are still giving ridiculous, unacceptable subsidies to oil companies and massive tax breaks that even they’ve said they don’t need,” Wasserman Schultz said. “That’s the first step that we need to take to try to bring our energy costs down.”
However, as Institute for Energy Research Senior Vice President Dan Kish told CNSNews.com, eliminating tax write-offs for oil companies will not have any effect on gas prices.
“If food prices are going up, would it make sense to tax farmers? Would that make prices go down or up? At the end of the day, basically, what they’re talking about is more un-American energy,” Kish said. “If you make it more expensive in the United States to produce energy, it will be produced somewhere else.”
Senate Democrats, led by Sen. Robert Menendez (D-N.J.) have introduced a bill that would eliminate tax write-offs for the five largest oil companies – ExxonMobil, Conoco-Philips, Chevron, BP America, and Shell – saying it is unfair that these large corporations continue to receive tax breaks when Congress is forced to cut the federal budget in other areas.
Kish pointed out that all five of the targeted oil companies are international corporations, and that the real result of Sen. Menendez’s bill would be to push their business overseas.
“The top five companies are in the distinctly unique position of being international; they have operations all over the world,” said Kish. “When the United States increases the cost of producing something here, they will simply produce it somewhere else where it won’t be taxed and the United States cannot tax them on it.”
Kish also said that in addition to not affecting gas prices, the Democrats’ plan may end up costing American jobs. Oil companies expend “massive amounts” of capital investments in oil exploration that results in job creation, he said, and higher taxes could drive that investment overseas.
“This is the nature of the beast,” he explained. “You’re either going to have that investment here or you’re going to penalize that investment, in which case it will go somewhere else. It means fewer jobs and more un-American energy.”
According to the American Petroleum Institute (API), the oil and natural gas industry in the United States supports 9.2 million jobs and 7.5 percent of GDP. It also generates nearly $100 million in revenue for the federal government every day.
Oil companies generally make a dime a gallon. Gasoline is taxed about a buck a gallon by the various levels of government. Which has the mismanagement and greed?
Senate Majority Leader Harry Reid (D-Nev.)is wrong because companies ALWAYS pass increased taxes onto the consumers. What would you expect? The ten cents per gallon that they earn will remain at ten cents per gallon. You and I will pay more at the pump for any increase in costs of production. Harry Reid, an allegedly corrupt politician, does not want to understand basic economics 101, and general knowledge and experience for the past 100 years.
Yep, I’ve read those figures in the past.
Obama and the Rats don’t have an energy plan, except for buying oil from overseas.
Obama even pledged a $2 Billion loan for Brazil so we could buy more from them while he still had a moratorium for drilling in the Gulf. Grrrrrrrrrrrrrr
Correct. Another thing to consider is that Reid, Pelosi and Obama are outright liars.
So, massive government subsidies to ethanol, windmills, etc. are necessary to keep those prices down, but subsidies to gas and oil companies cause those prices to go up.
Harry Reid’s logic is a marvel to behold.
I know your right, I’m not arguing that, but do you have a link to support that statement. So when I quote it, I have facts to back it. Thanks in advance.
Or they pass the tax onto the consumer so we end up paying more at the pump than we are now....DUH
Mark Levin recently cited average oil company profit at two cents per gallon.
Taxes run from a low around 28 cents to a high of 68 cents per gallon; quite a haircut
I’m going to keep posting this until every FReeper is an expert and can correct people on this subject.
Big Oil has been prevented from getting these subsidies since 1975. In the video below, please note that the Democrat speaking worries about how it’s going to look for Obama once people realize he is LYING about this issue:
Money phrase:
“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.”
I’m going to keep posting this until every FReeper is an expert and can correct people on this subject.
Big Oil has been prevented from getting these subsidies since 1975. In the video below, please note that the Democrat speaking worries about how it’s going to look for Obama once people realize he is LYING about this issue:
Money phrase:
“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.”
sorry for the double post. Just installed IE9 and I am still trying to figure it out.
do I really have to say it???
Thanks jazusamo.
The Demwits hate to see Americans able to find jobs, own homes, afford food and transportation, defend themselves, vote (if they’re not voting for Demwits), or express their opinions in person, in print, on broadcast media, or on the internet.
That’s okay. It bears repeating.
Thanks for posting. Great video and am really surprised Frost would admit to it.
When you said “I’m going to keep posting this until every FReeper is an expert,” I first thought you meant literally. ;-) Just kiddin’.
It does warrant repeating.
Can someone please explain why the ‘Rats are out to boost taxes on oil companies just now when they had two years to do it when they controlled both houses and the White House? If it’s such a great idea now, why wasn’t it implemented previously?
How about they just eliminate all subsidies & tax write-offs for everything? Yes, even your home loan & kids. The govt use’s the tax code as weapon, for social engineering and lots of other things. It is time for a Flat tax, Fair Tax, or anything other than what we have now.
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