Liberally Conservative

"Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children's children what it was once like in the United States where men were free....... ~Ronald Reagan~

Friday, February 17, 2006

Senate Benefits Package for Arab Oil Sheiks

Beware of your profits American Oil, the Senate curmudgeon's want to punish you for running a sound business plan. As FDR and his Leninist crew worked hard to punish big business, Liberals (Yes, including Liberal Republicans) want to tax you, punish you and give your shareholder's earnings to foreign entities and dictatorships.
Politicians will consider bailing out the mis-managed auto industry for UAW votes, they just can't stand the smell of too much business success. Gas prices are high, demand is high all over the world. We're not necessarily "addicted" to oil but it is the means by which we travel, fuel our equipment and in many cases heat our homes. Oil is the fuel of choice. It's all about Capitalism, free markets, supply and demand. Business survives by producing profits, that's the goal. If truly profitable energy alternatives exist someone will find a way to develop the products, market them and turn a profit. This is called ingenuity and entrepreneurship.
America’s energy companies are already providing a “windfall” of taxes — including corporate income, franchise, payroll, property, severance, and excise taxes. New filings with the Securities and Exchange Commission (SEC) show that the largest oil and gas companies in America (Chevron, ConocoPhillips, and ExxonMobil) are set to pay or remit over $158 billion in worldwide taxes for 2005. according to the Tax Foundation. This tax burden on American “big oil” nearly equals the total economic output of Iran and exceeds total GDP in 150 of the 184 countries ranked by the World Bank.
Democrats including Olympia Snowe (R-ME) in the U.S. Senate are promoting legislation which contains provisions to restrict full use of foreign tax credits and prohibit the accounting practice where inventory is estimated on a “last in first out” (LIFO) basis for tax purposes. These provisions target U.S. firms and would put them at a significant disadvantage in their competition with large foreign firms — including the state-run oil companies of India and China.
Further, this legislation works to drive Arab oil production and profits up as Americans pay the taxes on efficient U.S. companies while OPEC countries receive a free pass. These policies do nothing to promote new refineries or new oil drilling in and around North America.
Chuck Schumer (D-NY) is promoting a 25% higher tax on foreign-produced oil than if it were drilled from the ground by a French, Chinese or Danish firm. The U.S. would still import the oil, but any profits from that oil would flow to foreign, rather than U.S., firms and investors.
Liberal tax policy will drive a bear market, drive inflation, deflate the markets and return us to Jimmy Carter era gas lines, closed service stations and double-digit interest rates.
“Where is the politician who has not promised to fight to the death for lower taxes- and who has not proceeded to vote for the very spending projects that make tax cuts impossible?"
~Barry Goldwater

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