Wednesday, June 11, 2008

OBAMA HAS YET TO DEMAND CONGRESS TAKE ACTION OR EVEN LEAD ON THE ISSUE BEYOND - TAX THE OIL COMPANIES SO THAT THEY WILL USE IT AS A BACKDOOR TAX ON THE PEOPLE

In the last couple of days, I have had conversations with a brother and cousin in New York - both staunch Democrats. Neither actually supported Hillary (actually I do not know anyone in New York who supports or likes Hillary) or Obama. What was interesting is they are so mad at House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid for extreme incompetence that they are not voting in November. Their issues are oil, immigration, and tax relief for the New York middle-class (in NY 250k is barely a pot to piss in - a basic home in a safe neighborhood is 500k)

Yesterday Harry Reid led the Energy Bill to defeat for no better reason than to be able to go to the American people and blame the Republicans. He did not care one iota how much we are hurting and how much the world is in fact hurting. The entire Hollywood production was about gaining power for the sake of power - and not to help the people. He should resign along with his incompetent partner in crime Nancy Pelosi.

There were two issues in the bill, one the Republicans opposed and the President said he would veto, and one which had a good chance of getting through. The former was additional taxes on the oil companies. The latter was to impose regulations on the trading of oil as a commodity. If the latter were to work, which it may not have because it did not go far enough, then their would have been no need for the former. This is the proof in the pudding that the Democrats were just playing a game so that they could blame the Republicans so as to gain more power come November.

The decision of Barack Obama to stand with Harry Reid on this issue makes me sick. He is sufficiently well educated enough to know that any major tax increase on the oil companies will only be passed on to the consumer. It was in fact a proposed tax increase on the people and Barack Obama did not care - it was about getting the people mad at the Republicans to help his own election. Obama’s motto is- let them eat nothing, so long as I am elected.

The United States is the 3rd largest producer of oil in the world. We cannot regulate how oil is traded in other countries. But when the 3rd largest producer of oil in the world says - US originated oil will not trade higher than $70.00 a barrel it will send shock waves through the trading markets world wide and bring down the price of oil significantly. Twenty five years ago oil was not traded on the commodities market. Oil would have been set more or less how the experts have come up with the $70.00 a barrel for oil. This price allows for a profit on the most expensive oil, which is oil from shale. Now yesterday those making fuel from corn are claiming they need oil at $130.00 a barrel if they are to make a profit. There is only one way to say this - screw Iowa with their own corn husks.

The biggest issue facing the American people is oil. The price of roofing is going up, meaning housing, because of oil - tires, anything made from plastic, food, transportation, airfares - and on and on. Detroit is being forced to close down car manufacturing plants because people will no longer buy the SUV’s and large trucks.

On the day Obama secured the nomination if he were a leader, which he is not, he would have announced a comprehensive plan related to oil, and transportation. The American people, the airline industry, and car manufacturing industry are all going under because of the oil problem, and Obama has yet to demand Congress take action or even lead on the issue beyond - tax the oil companies so that they will use it as a backdoor tax on the people.

I cannot imagine why I would vote Democrat in November - I have half a mind to move to a state in play and work for McCain as punishment to the Democrats and so that McCain takes the blame when the economy come tumbling down.

To the VFW members who called me last night to say thank you for taking on Pat Almighty - you are welcome.

5 comments:

Anonymous said...

It's not that the proposal simply increases taxes, it's the logic they use for the windfall tax. Are they going to determine at what profit margin companies will incur a second tax? They love to throw around the lump amount of profits the oil companies are making without the context of production costs. $9 billion is a lot of money, but that's the profit after selling more than $100 billion worth of oil. Those are the scales that apply to this particular industry. You cannot simply mention the profit amount, and then expect the average person to be able to determine whether that is a reasonable profit or not.

X percent of a large profit is more than X percent than a smaller profit, so whatever tax rate already exists, if the oil companies have had windfall profits, then the government has been been collecting windfall tax revenues from them. Where is that money going?

There shouldn't be any tax breaks for oil companies, and the government should investigate if they are manipulating the price by limiting output levels, but I think the windfall tax is a bad precedent.

Patricia A.

BobbyWC said...

The article I am posting is not the one I was looking for - but it describes the basic problem

http://www.msnbc.msn.com/id/511118/

Yesterday I heard a report that there are 30 million acres leased by the US for oil exploration but not being explored by the oil companies-

Now I know enough to know that a lot of the land may have already been deemed worthless or too costly to explore - but the issue remains - why not then just give it back to the American people

The Dems are looking to pass a law which would cause the holders of the lease to either explore or forfeit the lease.

The bottom line is, put oil at $70.00 a barrel for all US originated oil and see what happens - most of the world would stand with us because they too are hurting-

I am also convinced Canada, Mexico and the UK - all oil produces would stand with us - Venezuela would be given an ultimatum to stand with us or face the wrath of the countries they allegedly are helping with discounted oil - which would be higher than $70.00 a barrel

The reality is - Obama and McCain and for that matter - most of Congress will only play sabre ratting with the oil companies but never act.

I think about now Bloomberg must be rethinking his decision not to run -

I do not believe I have ever seen the people so mad - they may actually stop watching TV long enough to act this time - but I am not quite ready to make that bet yet.

BObby WC

Anonymous said...

Ms. Patricia A. and Mr. BWC,

Both of you are amazing!

I don't believe you would move Bobby. You are having too much fun livin' in Brownsville. Not to mention, you would not be able to run for BISD, which would be a shame.

Patricia, you are absolutely right on the money with the oil profits. I have to ask, was anyone this ticked off at oil prices when the companies were losing money in the 1900's?

Now I do suspect the oil companies are playing us for fools with the high prices. I thought it convinient that prices lowered when the commodities people announced their secret 6 month investigations.

Great discussions you two.

V

The Merovingian said...

I can tell you from personal experience that the last time they implemented the 'Windfall' profits tax, it kept collecting money FROM THE LAND OWNERS for 20 YEARS !!

I wish to suggest that the persons promoting this do obscenely rude things to donkeys.

There is a bright side to this that nobody has pointed out:

Juliette can ask for money from the UT System, which is largely funded from oil revenues on State land. How about she does that, for a change.

"Of course I know. It is my business to know." -The Merovingian

Anonymous said...

Mr. Mero,

Dr. Garcia, I believe, has already asked for some of that money in the form of PUF (Permanent University Funding). Unfortunately, the State won't give it to her. So much for our influence up in Austin.

Roman