Tuesday Night Action: Senate to Vote on Energy Tax Hikes
by Capitol Confidential
From The Hill:
The Senate will hold a test vote Tuesday evening on a Democratic plan to repeal several tax breaks for the big five oil companies.
The plan would repeal an estimated $21 billion worth of incentives over a decade from Exxon, Shell, BP, ConocoPhillips and Chevron.
The vote on a motion to formally proceed to the bill will require support from 60 senators, and it faces big hurdles amid widespread opposition from Republicans and Democrats from oil producing states.
Because, as is noted, Republicans and several Democrats oppose the legislation, the measure could well fail.
However, Sen. Menendez, Sen. McCaskill and others up for re-election in 2012 have been pushing hard for it, apparently unworried about angering voters and aiding their eventual opponents by generating a steady stream of attack ad material.
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60 Comments
The right only opposes welfare for the needy. Socialized assistance for corporations and the wealthy — well, that is another matter altogether.
This economically suicidal idea has been provided for you by the useful idiots at SPAMCo, the DNC, CPUSA, DSA, SEIU, AFSCME and AFL-CIO…
Why burden yourselves with all of that thinking stuff when all of these cuddly people have already done it for you?
Come on! Let's be serious here! Does anyone think the loss of $21B over 10 years among the five major oil companies is going to make a difference to the oil companies? This is political dog and pony theater to make some politicians look like they are doing something when, in fact, they don't have a clue! Want to kill fifty birds with one stone? Drill here, drill now. Open up everything to oil and gas production with the proviso that the oil companies invest at least 5% of their profits in alternative energy for the opportunity. Want to see every American with a job? Want to see a booming economy with no money going to people that use the profits of oil to make war on us? Want to have a thriving alternative energy sector without us paying for it? And lastly, do you want to have a secure, cheaper supply of oil? Do it! Do it now!
I am all for repealing tax breaks and making the tax code fair and equitable for everyone. This can be accomplished by removing all tax breaks/subsidies on everyone, and lowering the income tax rate and applying it to EVERYONE. But it must be done all at once – with everything being done in single bill.
This is just a "target the oil companies" profits scam, ignorning the real causes of fuel price increases, and posturing for thier districts.
Idiots.
Barack Obama: "I will NOT raise taxes. Period!" P.S.- My party is a different story all together.
http://www.youtube.com/watch?v=k_7WUugsWng
"Guard against the impostures of pretended patriotism." George Washington
Pigressives only support tax breaks for their crony capitalist collaborators. Fascistic support for corporations that carry out their pigressive dictates.
Vile bastards. Why wouldn't a pigressive support real tax reform, eliminating ALL tax loopholes for everyone? Because then the pigressives would lose their dictatorial power to choose the winners and losers.
Yes, the pigressives are vile bastards, liars, scum.
That's what you support, Pigressing.
Exxon report shows government makes an average .54 cents per gallon. The Company makes an average of .07 cents per gallon. For them to explore and expand capital investment, to payoff their contractors and vendors, and to maintain their payroll, insurance and other related cost — it would be catastrophic for them were they to lose this tax break. All this amounts to is political bullying by Obama and the Socialist Democrat Party.
How's that Hope and Change working out, America?
Let the Senate bluster all they want. It's the House that can stop any of their crap. We need to worry about chairman "o" and his executive orders.
Why dontcha go after GE's tax money? Or Google's?
General Electric comes to mind. Not only did they not pay any taxes, they got rebates!
Got to love how the left picks and chooses their evidence. Besides Congress creates the laws that make up our tax system. All corporations can take advantage of the loopholes. Corporations must answer to their stockholders. If they did not leverage the laws that Congress provided them then they would be doing a disservice to their stockholders. So in other words, assuming "progressing" actually is employed and works for a company with a 401K, or invests on his own, he would be pissed that his investments were not leveraging the best position.
"The Senate will hold a test vote Tuesday evening on a Democratic plan to repeal several tax breaks for the big five oil companies."
LMAO. These are the EXACT same breaks given to ANY domestic manufacturer. So, if the "break" goes, the price at the pump goes up. Duh! Only libtards would fall for this.
Yeah, while the left supports ObamaKare waivers for their favourite restaurants and day spas thanks to Nancy. Get your head out of your ass! More than half this country pays no taxes, in fact, some get a government check at the end of the year. One in seven collects foodstamps. If corporations and the wealthy get "socialized welfare" at least they pay the taxes and provide the jobs for the majority to enjoy living in this country for free. Why is that so hard to get through your thick skull?
How is supporting lazy people considered progress? Supporting women who can't keep their legs closed to the dogs in the neighborhood is only progress for the dog that wants to do the humpty hump.
How about a test vote on scrapping the entire tax code and starting over without ANY loopholes? Well… I can dream, can't I?
Exactly, John.
What has happened to the country our Founding Fathers established, a new country free from government intrusion in every aspect of our lives? A land forged with their determination, hard work, and blood. Would they even recognize it? Chances are, they wouldn’t! .
We have been busy trying to make a living and shuttling our 2.06 children to school, baseball, football, soccer and dance, most of the population doesn’t realize what happened. Now we have a Federal Government with a budget over $3 trillion, a National Deficit over $14 trillion and representatives that will not represent the people from whom they get their job. .
Our pioneering legislators drafted plans for this country…plans that would control the aggressions of mad men and tyrants. Yet the very type of governing body from which our forefathers were trying to protect us has taken a strong hold. With the help of the “checks and balances” put in place to stave off despotic rulers, our country is edging more and more toward the very government our ancestors fled their homes to escape. .
We’ve already lost so much…Is it too late to turn back? How do we go about returning freedom to the population? What do we do? After all, those who do not learn from their history are destined to repeat it. Are we really ready to go backwards?
"Guard against the impostures of pretended patriotism." George Washington
When the senators proposing this dump their car allowances, free gas, insurance, maintenance, etc. and adopt a "ride your bike to the senate" bill, I think I can get behind it.
True to form, and right on que the Senate is laughingly predictable.
From the time the Energy Department was begun, right through today, every time there has been an uptick in energy prices, the Senate has resorted to one ploy, and one ploy alone.
Demagogue the evil energy industry.
As usual, Regressing leaves out the most crucial part of the equation. This should have read:
There's a sucker born every minute: Once Boy Urkel gets re-elected, they, too will feel the crush of those big tires' treads on their backs. Jeff Immelt really needs to ask those hedge-fund managers who gave Uuhhhhbama tens of millions back in 2008 what it feels like to get thrown under the bus. Can you say "Government Sachs," Regressing? Sure ya can!
Your opinion, misguided as it is, does not automatically become fact.
And, you miss the salient points….
It's not the government's money in the first place. The companies invested, took the risks, and earned it. Not allowing them to keep what they earned is a communist mentality, and goes against the private property rights in the constitution.
Eliminating the deductions for depreciation on equipment and value of the wells will result in a higher cost of doing busines (when these companies are already taxed at over 40%), and those higher costs will be passed on to the consumers. Since the oil companies only profit 8 cents per gallon of gas, there isn't a lot of room to absorb higher operating costs. The only options to adjust for those higher costs are raising prices, and laying off employees. They have stockholders to answer to, and a great many of those are ordinary citizens with stock holdings through their retirement accounts – so, in effect, you're harming the elderly and retired by reducing the value of their retirement savings.
You're following a 'They have more than we do, so let's take it!' mentality, and you don't grasp the eventual result:
when everyone who has more than you has had it taken, you eventually become one of the ones with more than everyone else.
Then they come after *you*
Better wake up soon……………
Leave it to a proggie to believe that big oil will take the hit without passing any added tax onto consumers.
The simple mind of the progressive.
Here is the major flaw in your logic. By raising energy tax, the tax will be passed onto the consumers, which then means energy cost will rise. When energy costs rise, the poor and middle class will take the biggest hit as it just got more expensive to drive and use gas in other needs to.
This just proves, the left doesnt give a damn about the poor of middle class. It is just a need to for their unending greed to take more and more from the people.
Socialists will always be toxic Socialists. They make sure that they remain the Rich Elite who RULE over the Country workers who remain poor, and enslaved to Govt programs. While we supply the Socialists with Tax Money and labor.
Stuart Varney said that's exactly what happened in England; Poverty, lack of freedom, and high taxes for the people.
Uh, I'm thinking there are some pretty specific tax breaks for oil companies in there, unless you can link otherwise. And these tax breaks, while they would, technically, come right out of profits, those profits aren't made at the gas pump. The pump profits are for Joe's gas station, since HE is the one who sets his price according to those around him, and basic supply and demand. The oil companies, on the other hand, are subject to the whims of the speculators who, on the one hand, provide a ready liquid market for their product, providing price stability and mobility, quickly adapting to conditions and preventing price bubbles. On the other hand, they can drive the price up or down according more to perceived theories and rumors than on facts, especially unknown factors ignored because of assumptions and other human frailties.
The tax breaks would, maybe, come out of this years profits, but only if they were made regressive back to the beginning of this year. Most likely, they would be voted on and passed and made effective on some future date, which, by that time, Big Oil (which includes Mom and Pop oil….hello, I AM A MOM AND POP OIL WILDCATTER!!!) will have either stopped doing things that were only being done either for the tax money or to qualify for tax money or that was only profitable with tax money. They will continue doing anything that wasn't affected or barely affected by the tax money, such as exploration and drilling, research and development for technology and improvements, etc.
The tax breaks are a break for the needy. They lower the price of gas which low income earners purchase. If we eliminate the tax break, the price of gas goes up and smacks the low income earners at the pump. Are you just not following the logic on this or is it too complicated for you to understand?
Tell GE to give back their gigantic tax breaks, and we'll call it even.
The Meaning of Socialism: QA with National Review's Kevin Williamson
http://www.youtube.com/watch?v=Yt7urGdlr_Y&fe...
"Guard against the impostures of pretended patriotism." George Washington
Oh Goody……………Democrats have another plan to fix things……………..
A suggestion for everyone…………………….. "Hide Your Wallets Now"………………………….
Your one of the "needy" and in this case you need to be strung up and gutted for the commie propaganda you spew all day while living on welfare, the drug money and the money your ole lady makes as a street hooker.
"Eliminating the deductions for depreciation on equipment and value of the wells will result in a higher cost of doing busines (when these companies are already taxed at over 40%), and those higher costs will be passed on to the consumers."
Exactly. And who do you suppose is paying that 40% tax rate that they're charged? Of course, that's the consumer too. No matter how it's sliced, every dollar that government takes, comes from the American consumer.
I'm with you on that Cowboy…………………..I really wish someone would explain to me how an agency created to help in the development of Nuclear Weapons has been allowed to morph into an over funded, over reaching enviromental cult……The Dept. Of Energy should have been "taken out behind the barn" 20 years ago……….
and let's not forget there cohorts in evil……….The EPA………………….
Yea, they only make 7 cents a gallon, and I like to sell you a fricking bridge.
That is why for the last 5 years they have made the largest profits of any business and that four out of big 5 are NON American oil companies and suck up billions in our tax dollars going to the commies in europe.
I cry for them as someone who has paid taxes for 45 years and used to pay 30 cents a gallon for high octane gas I know someone is screwing us in the ass with "oh they only make a few pennies" BS con story.
Then they may come for YOUR carcass.
They never stop.
Okay, I'm against tax hikes and I definitely agree we need to re-do the whole tax system and make it REALLY fair.
That said, what about the "subsidies" the oil companies allegedly get? Or farm subsidies, etc?
If we are talking about serious cuts and shrinking the gov't, are we ready to deal with stuff like this, or are there real economic, free market reasons to have such subsidies?
So, take their subsidies away from them. What do I care. They'll just turn around and raise the money for R&D the old fashioned way…they'll raise their prices and pass it along to the consumer. A private corporation has every right to charge the consumer a fair price to cover expenses, operating costs and a return of a dividend to their stockholders. This is simple economics. However, our legislators love to gin up the old wealth envy canard every time gas prices start to climb and they've got to demonize someone…might as well be those evil oil companies. Take a look at how much the imperial federal government gets on each gallon of gas sold in America…it's 18.5 cents per gallon.
The oil companies, earn between $0.5 to $0.8 cents per gallon "profit" on each gallon of gasoline. So, who's making more, the imperial federal government, who did nothing to extract that oil from the ground or the ocean, or the evil oil company that took on the risk, hired employees (who pay federal taxes too) and went about their business of supplying our energy needs?
Nope. Go look at the statute. The "link" is there for you to find. BTW – the "Brand named" gas stations have their price pretty much dictated to them. A friend of mine writes the s/w that links the stations to the corp offices.
This is my problem with how this entire argument is framed: Is it considered a subsidy if the government allows you to keep more of your own money?
A true subsidy is the government giving money to someone. What we are talking about with the oil companies is a tax break, which means the government takes less.
I am so freakin' tired of the idea that profits from a company, ANY company (outside of the CIA (The Company), which is a government institution) are the government's first, and the company's second. When the government gives my money to farmers to keep them from producing milk, that is a subsidy. When I write off the interest on my mortgage, that is not. See the difference?
I know the difference between the two. I know the oil companies (and other companies) get tax breaks and therefore get to keep more of their money, etc. and I'm fine with that. But do they get "subsidies" as well. That is what I'm asking.
Because if they are getting subsidies, I'm questioning that. I do not question the tax breaks.
You have my vote. Imagine a country with plentiful $20/barrel oil and little need to cow-tow to the middle eastern theives.
It's a little something called *volume*
If you sell 10 million of something at a 7 cent profit, you've made $700,000.
Additionally, there is also the sale of oil on the world market, as the world market price goes up, so does the profit.
Meanwhile, you're paying the government 54cents per gallon.
So who's really screwing who…..?
Everyone has an opinion and please beware that Obama is anti-oil and he even campaigned to reduce our oil and coal energy dependence, and also stated that the cost of fuel is going to go up as a result of his policies. Presently he and his czars appointed EPA regulators are not releasing drilling permits and nor have they lifted the Gulf Oil drilling moratorium, displacing hundreds of employees and other related industries. Also please consider that OPEC creates an artificial cost on oil and exploits it every chance they get. Also FYI, since February the Chinese have been divesting themselves of US bonds. Just a little at a time so as not to kill the market. The Japanese were buying some of those up. BEFORE THE EARTHQUAKE HIT. And FYI, the Saudi's aren't stupid. You print worthless money – you make it worth LESS. Guess what – THEY RAISE THE PRICE OF OIL. Yes, it's true the Oil Giants make big money — they also have good stocks and take care of their employees. But we can thank our corrupt government and OPEC for the spike in gas/oil cost. They intend to make it worse. WATCH
F-CKERS!
Exactly. What is the name of the "statute" or bill? There is no link in the story, and you claim X, but have no link. Unless by "any domestic manufacturer" you're referring to any OIL driller, transport, storage, refinery, or distribution/gas station? Because those tax breaks are designed, usually, for specific things, and even if they also benefit the small Mom and Pops, they benefit Big Oil more because they can take better advantage, simple market forces at work. Senators take money, pass the tax break, Mom and Pop get to write off their three thousand dollar land escrow or something, Exxon gets to write off six million in the same land escrow type account. This also gives the perception of fairness, which, technically, it is, but it's also not.
Average State Tax per gallon is 29.7 cents. They too do nothing for it.
Go research it. If you are commenting, you should base your opinion on known fact. I long ago stopped teaching for free. The info is there. Take a look at the proposed bill as a start.
Or Apple.
Progressive here is a cricket when it comes to being outed.
Why not go after your socialized assistance to GE corporate then? OR Google?
SO like I asked you before where do you steal your money from?
Michele Bachmann and her team has, and will, kick all of you wealthy Socialists to the curb where you
can continue trying to get our tax money for your Unions and 3 years Unemployment, and the Billions
it cost's US to have Illegal's trespassing here where they are encouraged to feel entitled.
Michele Bachmann will put an end to all of that Socialism, pronto. Pair her with Roemer, McDonnell,Va., Huntsman, Chaffetz, DeMint or any other solid Constitutionalist of any stripe and we have our Winning Ticket!
Exactly, you don't even know which tax breaks you're talking about, because you can't even mention one, let alone reference it for discussion. Teaching for free? You should be paying us to listen to your tripe. Again, you don't know what you're talking about. All I asked is for YOU to tell me WHICH tax breaks are up for discussion here, and you can't give a list, or a link, so how are we to discuss whether this or that is true or not? And then you give some lame excuse like “I'm not teaching for free”. Wah, crybaby. Give us a link, put the info on the table, or don't talk about it.—
Okay, that's what I thought. Thank you for clearing it up.
They're going to vote on not giving any government subsidies and tax breaks to solar and wind power too, right?
Pigressive, I like it cuz it could mean progressive pig or an oppressive pig.
We could also call them (as I have started recently) douchebaggers.
I am against all corporation subsidy. But in hand with that must be an end to the intrusive and oppressive regulations regarding AGW; ridiculous EPA rulings based on insignificant species endangerment; eggregious regulation from OSHA; outlandish tort laws that allow extortionist settlements and case proceeds. And the list goes on and on and on.
I am with the mind of reducing all corporate taxes to a flat 20% with no gimmicks. I am for the end of tax policy (fiscal policy to some) to 'stimulate' sectors and areas of the economy. I am for tort reform in all areas of industry and I am for the end of government ownership of 80% of our natural resources (or some such large percentage, I forget the exact number).
And I am for the expulsion of all professional politicians as defined by the answer to a simple question?
Have you ever held a real job or run a real business?
Duh
If you are commenting you should provide your own links to back you up. I am not your secretary. If you aren't willing to defend your position then go away troll.
It is the feds that is screwing the taxpayers.
It is they who GIVE away our own resources such as the cowards of canada to the dutch, to england as in every case they are given our land to rape to suck out our own oil and then rape us to get it back
BP scam now comes out that we the people are to pay for all their damage as it is being claimed off BPs taxes.
So here were have 4 non American vendors who are being PAID to steal our oil and then make billions on profits.
And Please, stop the low profit crap, GAS is a BI-product of refining oil so they charge multi times for the output of the same barrel of oil and to make 9 BILLION in PROFIT with 105 billion in sales in just 3 month is one hell of a lot of 7 cent a gallon gas
Exxon Mobil’s profit in the quarter was $9.25 billion, or $1.85 a share, compared with $6.05 billion, or $1.27 a share in the period a year ago. Analysts surveyed by Thomson Reuters had expected $1.63 a share. Total revenue in the quarter was $105.2 billion, up from $89.8 billion in the quarter a year earlier.
For the year, Exxon Mobil made $30.46 billion, or $6.22 a share, compared with $19.28 billion, or $3.98 a share, for 2009. Revenue for 2010 rose to $383 billion from $310 billion the previous year.
Exxon Mobil said its production increased 19 percent in the quarter. Gas production in the United States has tripled as a result of the company’s acquisition of XTO Energy and other purchases of companies with shale field operations around the country. Gas now accounts for almost half of the company’s production, up from 43 percent a year ago.
Earnings from the company’s upstream business, which includes oil and gas production, rose to $7.48 billion in the quarter from $5.78 billion in the period a year earlier.
The company’s refining and marketing business reported earnings of $1.15 billion after a loss a year ago, driven by higher refining margins.
Pimco's El-Erian: 'Financial Repression,' Higher Inflation to Hit US Tuesday, 17 May 2011 09:14 AM
http://www.moneynews.com/Headline/Pimco-El-Erian-...
"Guard against the impostures of pretended patriotism." George Washington
The so-called Big Oil Subsidy is Section 199 of the Tax Code. This is a standard deduction for every industry that "manufactures" something, including film makers. The irony of it is that the oil and gas companies get a 6% deduction while most other get a 9% deduction.
Well, better late than never as they say, the Senate blocked the tax hike. The Dems and Obama are wailing away in their highchairs. Waaaaaaaaaaaaaaaah
http://www.kgw.com/news/business/121998394.html
JRvette – just in case you missed it, here is a great article for your consideration. Hope you find it interesting. http://bigpeace.com/bschaeffer/2011/05/17/congres...
Gasoline is only a small part of their sales. And, many of those other chemicalsactually are far more profitable than gasoline. Not to mention that different grades of crude yield a different mix of percentages of the various petrochemicals.
The difference is that there's the extraction proces, which yields revenue through direct sales of crude, and then there's the refining process, where purchased crude oil is refined into the various petrochemicals marketed to manufacturers and consumers. To make a long story short, only a small part of an oil company's profit comes from bulk gasoline sales (yes, when you buy it at the gas station, you're getting it third or fourth hand). The lion's share of the profit comes from bulk sales of unrefined crude oil on the world market.
Perhaps if we could actually build a refinery without a 35 year waiting period, we'd have more refining capacity here, and more domestic production would end up in the domestic market instead of being shipped to other peoples' refineries overseas….
Increasing oil company taxes, however, is definitively *not* the way to bring down gas prices.
It's like thinking that raising the taxes on farmers will bring down the price of food…
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