GOP still defers to big oil
While Republican leaders sharply criticize soaring gasoline prices and energy industry profits, GOP negotiators have decided to knock out provisions in a major tax bill that would force the oil companies to pay billions of dollars more in taxes on their profits.
House and Senate tax writers have been struggling to reach an accord on separate tax bills approved last year to extend some expiring tax cuts enacted during President
Bush's first term. But House Republicans have raised strong objections to Senate-passed provisions that would raise nearly $5 billion in taxes over five years - primarily by changing arcane accounting rules that have allowed oil companies to substantially lower their tax bills, according to House and Senate tax aides familiar with the talks.
The biggest of the provisions would change accounting rules that apply to oil in storage. Currently, oil companies are allowed to calculate the taxable value of their inventories based on the value of the oldest stocks, when oil may have been worth $30 a barrel. But much of the inventory may have been pumped from the ground when oil was selling for more than double that. Critics say that understates the value of the companies' oil supplies purely to lower their tax payments.
The actions of Republicans hashing out a tax bill behind closed doors indicate that, despite tough talk from the White House and Capitol Hill, the party is not ready to
hit the oil companies hard - even on measures that have broad support in the Senate.
Since Congress returned to Washington this week, lawmakers under pressure from angry constituents have threatened to take action against the oil companies. With crude oil prices well over $70 a barrel, Sens. Byron L. Dorgan (D-N.D.) and Christopher J. Dodd (D-Conn.) vowed yesterday to push for a vote in the coming days on a 50 percent excise tax on profits on oil selling for more than $50 a barrel. Sen.Arlen Specter (R-Pa.) has suggested a similar tack.
posted by John Good @ 6:55 PM
13 Comments:
The big breaks that Congress enacted last year already have made Big Oil Billions.
Today the Speaker and Frist "arrived" at "work"(snicker snicker) in a hdrogen powered van. Anything these charlatans do is B.S. From the wake up call to night night.
Peace.
There's GONNA be a wake-up call, and it'll arrive in early November me thinks. . .
John & Human:
I agree come election time, those
that care will voice their vote
and change is coming.
Let's look at just three other areas about the oil mongers compared to the supply & demand;
profit margins; and goverment economics.
* Supply & demand, lets see EU
is paying between $5.00-$6.00 per gallon. And our hardhip is up to $3.00 per gallon. Our Federal Government does not allow new refineries, thus the process takes
extremely long to get the end product to the consumer. Of course there are 14 different grades of gasoline to be processed because of
legislation to limit fuel emmissions for the enviromentally
concerned in several states. In addition, we are held hostage by outside concerns(global) to spank us, of course because who sets oil prices John? OPEC. Arabs.
* the profit margin of the largest
corporation in the world is 10%
Yep, that would be Exxon Mobile.
They are the largest corporation in the world yet, they rank low at 127 on the the list of most profitable corporations in the world.
Compare that to Google which has a 45% profit margin, Johnson & Johnson-21%, Coke a-Cola 20% profit. And I could go on and on. Do you keep your savings at 3%-4% in the bank or are you an investor? The point is Exxon Corp. pays taxes...just like you & I do.
And the layman also pays taxes. So tell me are we gonna go after CEO's that earned $400,000 bonus got taxed 50%, took home $200,000 bonus for running the largest commonity in the world? And the shareholdersm earned 10% return on their investment. Let's do spend federal money (our money to find out how we are taxed to death). Even if it was millions do you get the point?
Just a thought, other expenses of Exxon: motor oil, argricultual
fuel, diesel, research, and did
Exxon ask for welfare to repair
all the refineries lost in Katrina
and other global off-sets? Airlines
are, Car builders have, Savings & Loans, is everyone on welfare or is the federal government driving
us to welfare. And when the the
baby boomers are retired who is
gonna pay. Is the federal government gonna tax our retirement savings plan?
* Government economics
For every gallon of gas purchased
how much tax is paid to the state
& federal government? Would you believe 10%? I hope not, because
it's close to 50%-70% per gallon.
I'd love a rate of return of profit
of 50%-70% on my investment. Do you
believe your tax dollars are wisely spent by the government. I think free private enterprise is fair.
Thanks for your blog and allowing me to voice another view. If you are interested in sources on research and stats I have several.
Start at Tax Foundation.org
Wow, Bobbett, you rock.
So here's my question, what's stopping the oil companies from cranking the price of crude up to $90 to cover the loss of profit if these energy-retarded congressmen slap their dicks in the bear trap, as it seems they want to?
They need to work on how to get the bottleneck out of the system instead of trying to profit vicariously through the Big Oil companies. By ULTRA-TAXING crude oil, they are no better than Exxon, as this increased supply-chain cost will be passed down directly to the consumer by virtue of the retail pump price.
Fuck that.
Peace to you and yours Bobbet.
Intersting figures. I do have one problem with one thing you said(I'd have to research the figures). That is that the government does not allow new refineries. That is false. The reason no new refineries have been built in over 30 years is because it is a bad investment.
Not because of the supposed low profit margin you site, but because the age of oil is on the decline.
Also if you don't know Exxon Mobil just posted the biggest quarter profit for any company. Ever.
Peace.
Refineries are NOT a bad investment, they are guaranteed money-makers if you're investing long. Some people would say that Exxon is a bad investment for growth speculators because they only show a 10% GPM (which is NOT considered a growth-type investment).
If the so-called "age of oil" is on the decline, they why does oil consumption and demand continue to climb? That sounds more like "ascent" to me than decline.
As for Exxon/Mobil posting the biggest quarter profit for any company ever...just another indicator that "the age of oil" is still on an upward slope. Plus, we live in a moderately capitalist society so that is allowed. There are a lot of people out there whos' retirement portfolios are much stronger now because of it...and I'm not talking about E/M execs either...I mean everyday Joe's like me.
Get used to the gas prices, folks. They're not ever going to go down below $2 again becuase we tipped our hand and showed the world that we are willing to pay more than that for gas. Products are only worth what people are willing to pay.
As usual, you are DEAD WRONG.
Refineries ARE a bad investment, and there IS NO investing long as there no longer IS a "long term" when it comes to fossil fuels. They're nearly gone. Oil companies know this and are making huge profits while they still can. When the oil is gone, so are they.
If the so-called "age of oil" is on the decline, they why does oil consumption and demand continue to climb? Because people are too stupid to look at the reality of depletion, and too uncaring about the development of new technology. It will have to be done soon, and now is better than waiting til supplies are even tighter, or gone.
As for Exxon/Mobil posting the biggest quarter profit for any company ever...just another indicator that "the age of oil" is still on an upward slope. Oil companies endured no added costs, yet their profits have balooned by 46% the first quarter of 2006 alone. That's called fucking the middle class, bub.
I mean everyday Joe's like me. You are NOT an average Joe, you are an average smug aristocratic conservative who cares only about his own wallet.
Get used to the gas prices, folks. You're right. Thanks for fucking us so that the investor class can enjoy record profits on our backs.
Products are only worth what people are willing to pay. Willing? HAVE to, Andy. Again, you have no understanding of what you're talking about. "Average Joe's" like ME, who depend on oil to earn our living, and are now spending $200 per week on fuel, are a little pissed off right now. And it's at oil companies, investors, and our current so-called leadership.
Oh and, by the way, the following numbers are so far off, I can only guess where these "facts" came from. Taxes are a MUCH smaller increment of total cost.
* Government economics
For every gallon of gas purchased
how much tax is paid to the state
& federal government? Would you believe 10%? I hope not, because
it's close to 50%-70% per gallon.
I'd love a rate of return of profit
of 50%-70% on my investment. Do you
believe your tax dollars are wisely spent by the government. I think free private enterprise is fair.
"Average Joe's" like ME, who depend on oil to earn our living, and are now spending $200 per week on fuel, are a little pissed off right now.
I guess you built a flawed business model. Economists have been saying for years that gas prices in the US were being held artificially low and that they would rapidly and dramatically increase of their own accord. NOTHING can hide from the laws of global economics.
Thanks for fucking us so that the investor class can enjoy record profits on our backs.
Don't even try to link this to "class warfare" or whatever conspiracy theory is the flavor of the day, it's absolute crap. What you are watching is spoiled fucking morons choking on their own stupidity and arrogance. Acting like any one person or one company can change the landscape of the global market to "keep prices low" is a fucking fairy tale. The Europeans have been paying over $5 per gallon for over 15 years. Hell the Spaniards were paying $8/gallon when I was in high school in 1993 and our gas was about $0.89/gallon. We're still getting cheap gas compared to those poor bastards.
Because people are too stupid to look at the reality of depletion, and too uncaring about the development of new technology. It will have to be done soon, and now is better than waiting til supplies are even tighter, or gone.
Show me on paper. I have heard no credible evidence to suggest we are even within 100 years of being out of oil. Hell, there is a group of Swedes and Danes that think that there is a massive oil deposit around the entire planet directly under the mantle....they just haven't figured out how to drill it yet. At any rate, the "scientists" who say we are almost out of oil usually pan out to be nutcases in the long run. MOST credible scientific sources (including several geologist relatives of mine) say that there is plenty of oil, we just have to get it piped here and refined. If you want to call 90% of the scientific community "too stupid," go for it, but I'll not be a party to it. You've shown me no evidence that you are smarter than they on these matters.
You are NOT an average Joe, you are an average smug aristocratic conservative who cares only about his own wallet.
You obviously have no idea what you're talking about. What would ever lead you to believe that you are qualified to speak about my finances? That's just erroneous assumption on your part.
I won't hold your preposterous statements against you, including your cute little "smug" comment. I understand that it's easy to reach a level of frustration when you are getting schooled.
Call me all the names you want, it doesn't change the fact that you are fighting a losing battle, and that has nothing to do with me.
Call me all the names you want, it doesn't change the fact that you are fighting a losing battle, and that has nothing to do with me.
I posted my thoughts. You wanted to have a debate, you always do. That makes it having to do with you. I tire of defending my views. You have different ones, fine. I don't jump in on every post of yours that I disagree with,and nevr would. Not my style. And it makes me irritable.
Peace to you and yours Andrew. I think you are under the mistaken belief that "American" companies are American. Nothing could be fuerther from the truth. Oil is not a free market, it is a controlled.
How much oil do think is left on the planet?
Would you say that we have as much as used in the last hundred years? Which is for all intents and purposes the begining of the Age of Oil.
Would you trust the NGS numbers on fossil fuels?
Peace.
Human, Peace to you too, man. John, sorry for the tirade, I've been getting bent out of shape on this oil business lately. I gained some important new perspective on the topic of energy this weekend, I'll be continuing the debate on my blog in the next day or two, feel free to chime in with like-thoughts or dissent, you know I live for debate...sans any name-calling between us...life's too short for bickering between those of us who really are interested in a better future for everyone.
Cop Out.
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