Posted on 04/28/2012 2:55:39 PM PDT by reaganator
Senator Sherrod Brown's recent comments on reducing the federal budget deficit; > > "Cut $20 billion in spending by ending taxpayer-funded subsidies to the five biggest oil companies."
$20 billion is a ridiculous amount to cite. The figure the other Democrat Socialist Statists use when demagoging this fabricated issue is around $4.3 billion in so-called government "subsidies". > > Senator Brown and President Obama talk about huge "subsidies" as if taxpayers are signing billion dollar checks to oil and gas companies. But oil companies do not get subsidies. Rather, like every other business, they are allowed to take tax deductions for the expenses they incur. A tax deduction and a government subsidy are not the same. > > The domestic manufacturing tax deduction that oil and gas companies receive is a general tax deduction that goes to all domestic manufacturing. Producers of clothing, roads, electricity, water and many other goods produced in the United States are all eligible for the manufacturers nine percent tax deduction. Congress already imposed a tax hike for oil and natural gas companies by freezing the deduction at six percent for just that industry. > > The only tax in which the oil companies seems to get special treatment compared to other industries is intangible drilling costs. The amount of that subsidy would be $0.78 billion per year-enough to fund less than two hours of federal spending in 2011, and not even half the amount we are lending a foreigned-owned and state-owned oil company for drilling offshore in Brazil. > > Oil companies already pay tax rates of 40-50 percent of income. For one company, Exxon, in one quarter of one year, that amount was over $8 billion, or almost double the so-called "subsidy" for all oil companies for an entire year. > > Profit is the amount of money a company has made. Profit margin is the amount of money your company or business has earned as a percentage of total revenue. The profit margin for the gas and oil industry is around 6.2 percent. > > When politicians use the words "subsidies" and "tax deductions" interchangeably it is a deliberate attempt to mislead Americans. A purposeful, calculated lie. > > Senator Brown and President Obama are Leftist anti-capitalists who openly advocate government "solutions" and government control. They attack the oil industry and its product because oil is the lifeblood of the American capitalist free market economy. Oil is the fuel of Freedom.
I’m sorry about the “no break” in the text.
I hope the read is worth the eye strain and would like your response.
This is my letter to the editor to my local Ohio newspaper, the Sidney Daily News responding to Sherrod Brown’s oil subsidies statements.
Good response. Brown’s assertion that his proposed ‘cuts’ would save $85B on a $7T tab also made me whince.
Again, I copied and pasted from my e-mail. I know it bothers many to have it all running together like this, so my apologizes.
Please feel free to tweak this response for use in newspapers that Sherrod Brown’s lies have appeared in. I encourage this.
This election cycle, all is at risk, everything.
Obviously the government loses any royalties if those wells are on government owned land.
Given the very high price of pumping US oil taking away normal tax deductions for costs incurred in producing that oil will result in a rather large scale shutdown of American wells.
Senator Brown probably ought to retire ~ it's clear he's no longer able to think through this topic.
The goal is to create the necessity of nationalizing the oil industry.
If the oil industry can longer produce oil profitably, they won’t. The nationalizing of the oil industries “for the good of the people” will ensue.
Brown is beatable, but his opponent Josh Mandel’s ads have him wearing his military uniform and touting his service in Iraq. Which is commendable. But, come on! Hammer issues. He is state Treasurer, but looks very young (he’s 34).
There is so much to go after Brown and Obama on. Every time the speak they are lying about something.
“Obviously the government loses any royalties if those wells are on government owned land.
Given the very high price of pumping US oil taking away normal tax deductions for costs incurred in producing that oil will result in a rather large scale shutdown of American wells.”
I know that I would have to go on welfare because all of my income except SS comes from wells that would have to be shut in and I am to damn old to go back to work.
Also state governments receive revenue even if the well is not on government land. In Oklahoma we pay a gross production tax of 7.2 % off the top. That is even if the well is operated at a loss, we still have to pay 7.2 % of the gross revenue. I don’t know many other businesses that have such a tax burden.
"Cut $20 billion in spending by ending taxpayer-funded subsidies"
Wow! That says it all. A tax allowance = federal spending...???!!!
Allowing a company to keep a portion of the money they made by creating and selling an essential product that drives the entire American economy is equated to spending by the ChiComs in our federal gubermint?
Deficit of 1.6 TRILLION and this clown is worried about a few billion in tax deductions for oil companies.
Not only is that a pittance, but it will just be passed on to consumers.
Consumers= That’s us folks, we will pay it at the pump.
This is a US Senator who is misrepresenting oil company tax deductions as oil company “subsidies”.
Sherrod Brown is THE issue here more than the fabricated issue he is lying about.
With capital gains, you pay taxes every time you win and get to write off $3,000 of losses if you have other income (like from interest).
So over 3 years if you make $250K and lose $4 million, you pay about $75K in taxes on a $3.5 million loss.
If the tea party groups in Ohio can replace weasel commie Brown with a CONSERVATIVE, I’d say we accomplished something POSITIVE for our State AND our Country.
“A tax deduction and a government subsidy are not the same.”
Well, there is the author’s first mistake... ANY process that reduces current or planned future tax revenues is touted as a subsidy by the progressives. Another example of them being still in control of the language of the debate.
Call them out on every instance of their BS. That’s the fastest way to shut down their arguments.
Brown is nothing but a cheap, freeloading, two bit commie punk. What has that lowlife bastard ever done for America? Now, what have the oil companies done for America. FUBrown.
"Cut $20 billion in spending by ending taxpayer-funded subsidies to the five biggest oil companies."
$20 billion is a ridiculous amount to cite. The figure the other Democrat Socialist Statists use when demagoging this fabricated issue is around $4.3 billion in so-called government "subsidies".
Senator Brown and President Obama talk about huge "subsidies" as if taxpayers are signing billion dollar checks to oil and gas companies. But oil companies do not get subsidies. Rather, like every other business, they are allowed to take tax deductions for the expenses they incur. A tax deduction and a government subsidy are not the same.
The domestic manufacturing tax deduction that oil and gas companies receive is a general tax deduction that goes to all domestic manufacturing. Producers of clothing, roads, electricity, water and many other goods produced in the United States are all eligible for the manufacturer’s nine percent tax deduction. Congress already imposed a tax hike for oil and natural gas companies by freezing the deduction at six percent for just that industry.
The only tax in which the oil companies seem to get special treatment compared to other industries is intangible drilling costs. The amount of that subsidy would be $0.78 billion per year-enough to fund less than two hours of federal spending in 2011, and not even half the amount we are lending a foreign and state-owned oil company for drilling offshore in Brazil.
Oil companies already pay tax rates of 40-50 percent of income. For one company, Exxon, in one quarter of one year, those amounts was over $8 billion, or almost double the so-called "subsidy" for all oil companies for an entire year.
Profit is the amount of money a company has made. Profit margin is the amount of money your company or business has earned as a percentage of total revenue. The profit margin for the gas and oil industry is around 6.2 percent.
When politicians use the words "subsidies" and "tax deductions" interchangeably it is a deliberate attempt to mislead Americans. A purposeful, calculated lie.
Senator Brown and President Obama are Leftist anti-capitalists who openly advocate government "solutions" and government control. They attack the oil industry and its product because oil is the lifeblood of the American capitalist free market economy. Oil is the fuel of Freedom.
We need oil.
We don’t need the tax breaks for another remake of the Texas Chain Saw Massacre.
End the breaks to Hollywood if you feel they rob local communities of funds for the needy.
Good post. Oil companies don’t get money from the government, they pay the government taxes and royalties.
Raise their taxes if you want to but ask yourself how is that going to lower the cost of gasoline at the pump?
And, considering the fact that oil companies can and do drill all over the world, how does raising their taxes encourage them to drill here and put your brother in law back to work?
Again, good post.
thank you!
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