[JRixlcvF]

Jan. 18 (Bloomberg) -- House lawmakers, completing the Democrats' legislative priorities for their first 100 hours in power, approved legislation repealing $7.7 billion in oil company tax breaks and closing a loophole in offshore drilling leases.

The bill, approved 264 to 123, rescinds a $7.6 billion tax break from 2004 that allows oil companies to claim deductions for oil and gas production and refining. The measure also alters rules for depreciating geological survey expenses, which would add $104 million to federal coffers.

Taking back oil and gas subsidies approved in the Republican-controlled Congress and signed into law by President George W. Bush is the last of six pieces of legislation House Speaker Nancy Pelosi has pledged to enact in the first 100 hours since Democrats took control of the chamber on Jan. 4. Funds from the bill will be used to support alternative energy supplies and energy efficiency.

Bloomberg Just as oil settled below $50 a barrel today and I was hoping to start seeing the cost of gas go down, the House makes this brilliant move. If the Senate concurs and the President signs, I predict we can expect higher gas prices again down the road.

"The idea that we'd bring a bill to the floor making it more difficult and expensive to produce oil and natural gas at home -- in the middle of winter, no less -- just boggles my mind,'' said Representative John Peterson, a Pennsylvania Republican. Yes, isn't that magical.......

[Seiblybiozy]

It is magical.....They'll pass taxes to keep prices up but then end up handing out money to the low income families that can't afford to heat their homes.
Vicious circle.

[ClorrerVeks]

It is magical.....They'll pass taxes to keep prices up but then end up handing out money to the low income families that can't afford to heat their homes.
Vicious circle.

Pandering to class warfare enthusiasts requires the cycle of both appearing to reward poverty while punishing the wealthy.

Lucky for the democrats most of their supporters suffer from a heavy dose of economic ignorance.

[blackjackblax]

Pandering to class warfare enthusiasts requires the cycle of both appearing to reward poverty while punishing the wealthy.

Lucky for the democrats most of their supporters suffer from a heavy dose of economic ignorance.

Right because it's ther dems that have taken us to the current defecit. How about you try to talk about the subject without throwing out insults. I am inclined to agree with you on this subject but then you throw out insults and I want to disagree.

[ClorrerVeks]

I disagree with the republican spending spree under the current administration.

However I don't hear the Republican party constantly playing the class warfare card to their constituancy.

[blackjackblax]

I disagree with the republican spending spree under the current administration.

However I don't hear the Republican party constantly playing the class warfare card to their constituancy.

What does the class card have to do with anything in this thread? This is about oil companies and taxes. No class involved there.

Instead of giving the oil companies 7,600,000,000 dollars in tax breaks how about they give US citizens the ability to write off part of their energy expenses? I don't think the oil companies are interested in passing the savings on to consumers.

[tactWeiccaf]

It is magical.....They'll pass taxes to keep prices up but then end up handing out money to the low income families that can't afford to heat their homes.
Vicious circle.

Your right. I've also noticed that Dems don't like things cheap (unless its an entitlement paid for by taking money from somebody else). What happens after high taxes causes higher prices is that now there is a reason to raise even higher taxes to help the people pay for the goods that are now higher priced from the original new high taxes. A "Vicious circle."

What I've always wondered is why aren't democrats smart enough to fix the problems without raising taxes? Raising taxes in my opinion is the easiest and laziest way to try to fix a problem. Maybe if they used reason and logic instead of feelings and emotions, they'd be smarter...


Kramer

[ClorrerVeks]

What does the class card have to do with anything in this thread? This is about oil companies and taxes. No class involved there.

Instead of giving the oil companies 7,600,000,000 dollars in tax breaks how about they give US citizens the ability to write off part of their energy expenses? I don't think the oil companies are interested in passing the savings on to consumers.

How is the democratic motto of: "Tax the rich" not class warfare, and how does a tax increase directed at oil companies not fall into that category?

The primary motivation behind tax breaks to oil companies would appear to be to help them maintain their competative advantage in a global market.

[Seiblybiozy]

Maybe if they used reason and logic instead of feelings and emotions, they'd be smarter...


Kramer

We are talking about politicians are we not ?

IMO, all branches of government is being overrun by lazy good for nothings that just want to "feel" important while living high on the hog by us taxpayers.

[blackjackblax]

How is the democratic motto of: "Tax the rich" not class warfare, and how does a tax increase directed at oil companies not fall into that category?

The primary motivation behind tax breaks to oil companies would appear to be to help them maintain their competative advantage in a global market.

I didn't know the class sytem applied to companies. When I say lower class i'm not talking about failing or small companies. I'm talking about a group of people. What is your class system like?

Why oil companies? How about a 7.6 billion deductions for semiconductor companies? That would serve my interests best and it could drive down the cost of consumer electronics for everyone.

[ClorrerVeks]

I didn't know the class sytem applied to companies. When I say lower class i'm not talking about failing or small companies. I'm talking about a group of people. What is your class system like?

Why oil companies? How about a 7.6 billion deductions for semiconductor companies? That would serve my interests best and it could drive down the cost of consumer electronics for everyone.

Of course companies are included in the class warfare view of the world. Thus the existence of the, evil faceless corporation, view point. Oil companies as some of the larger companies are almost the banner holders of the 'evil faceless corporation' stereotype.

As for the deductions by other companies can you show that other companies whose production is vital to US National Security, don't recieve similar tax deductions.

[blackjackblax]

Of course companies are included in the class warfare view of the world. Thus the existence of the, evil faceless corporation, view point. Oil companies as some of the larger companies are almost the banner holders of the 'evil faceless corporation' stereotype.

As for the deductions by other companies can you show that other companies whose production is vital to US National Security, don't recieve similar tax deductions.

I dunno, but I'd assume they don't since the dems didn't target any other industries. I did however dig this thing up on oil and taxes.

Oil Slickers: How Petroleum Benefits at the Taxpayer's Expense-Part 1

Kind of interesting about some of the tax breaks the oil companies get.

I know in the semiconductor industry we are building fabs outside the US for excessive taxes and lack of incentives. It is just cheaper to build them outside the US. That is why I'd assume the semiconductor indusrty isn't getting billions in tax breaks.

[ClorrerVeks]

I dunno, but I'd assume they don't since the dems didn't target any other industries. I did however dig this thing up on oil and taxes.

Oil Slickers: How Petroleum Benefits at the Taxpayer's Expense-Part 1

Kind of interesting about some of the tax breaks the oil companies get.

I know in the semiconductor industry we are building fabs outside the US for excessive taxes and lack of incentives. It is just cheaper to build them outside the US. That is why I'd assume the semiconductor indusrty isn't getting billions in tax breaks.

Its an interesting article but it misses several key points. First it assumes without proving that providing tax breaks to oil companies is a loss for the tax payer. It completely ignores economic reality that the tax payer will still have to pay the price through higher oil costs if there were no breaks for oil companies.

Secondly the article completely ignores the interwoven fabrics of oil companies and national security. Despite all the yelling from the left, the simple fact exists, the US NEEDS oil to function as a country.

As for your point about the semiconductor industry I did a quick search and was able to locate several state level tax breaks provided to this industry. It would also appear that one of the primary drives moving this industry overseas is immense tax breaks provided to the industry in Taiwan. I do not know the level of tax breaks given to these companies here but to say there is no tax break would appear to, at lease in several states, be incorrect.

[blackjackblax]

OK, I wasn't trying to state that the semiconductor didn't get any tax breaks. It just doesn't seem to get the same benefits that oil does. I'd also say that computers are a huge part of national security. I understand the reaoning, but I just think the oil industry may get such benefits partly due to our president's family and their ties to oil.

[ClorrerVeks]

OK, I wasn't trying to state that the semiconductor didn't get any tax breaks. It just doesn't seem to get the same benefits that oil does. I'd also say that computers are a huge part of national security. I understand the reaoning, but I just think the oil industry may get such benefits partly due to our president's family and their ties to oil.

The president doesn't set tax policy, congress does (as demonstrated by the raising of taxes on oil companies bya democratic government).

President Bush personally has closer ties to the Baseball industry then the oil industry.

[jinnamys]

OK, I wasn't trying to state that the semiconductor didn't get any tax breaks. It just doesn't seem to get the same benefits that oil does. I'd also say that computers are a huge part of national security. I understand the reaoning, but I just think the oil industry may get such benefits partly due to our president's family and their ties to oil.

I would disagree. The Semiconductor industry has gotten its fair share with the ETI, extra territorial income, deductions along with lopsided APA rules that have now been deemed "unfair" by WTO. The other issue is that the repeal will not do anything substantial to the price of oil to the consumer nor to the shareholders in the company. I am surprised that the Dems are thinking this is a major win, but it is mostly smoke and mirrors.

[jinnamys]

Just as oil settled below $50 a barrel today and I was hoping to start seeing the cost of gas go down, the House makes this brilliant move. If the Senate concurs and the President signs, I predict we can expect higher gas prices again down the road.



Yes, isn't that magical.......

Personally, I don't think it would do anything substantial to the price of oil on the open market or the price per gallon to both the consumer and shareholder. It is mostly smoke and mirrors that the Dems are pandering too.

[JTS_tv]

Wait. I want to understand what you guys are saying.

You're saying that an industry that is rolling in more cash than they know what to do with; that is making profits at a level never seen before in the history of humanity should be getting tax subsidies?

How does that make sense?

[cepAceryTem]

Wait. I want to understand what you guys are saying.

You're saying that an industry that is rolling in more cash than they know what to do with; that is making profits at a level never seen before in the history of humanity should be getting tax subsidies?

How does that make sense?

I always find it interesting when people put dollar values on profits without taking into consideration what the company's actually net profit is from the total revenue. While the Exxon profits in '05 were a record in dollar terms, they were not in terms of net profit. Their "net" was about 8% of the gross. Do a little research and you will find that the major new organizations that vilify the oil industry have higher net profit levels than oil companies not to mention a significant amount of other industries.

I won't even go into the cost of exploration that turns up nothing.

Funny how none of you were concerned about oil company profits when oil was at $10 a barrel and they were bleeding only 13 years ago.

[MegaJIT]

Just as oil settled below $50 a barrel today and I was hoping to start seeing the cost of gas go down, the House makes this brilliant move. If the Senate concurs and the President signs, I predict we can expect higher gas prices again down the road.



Yes, isn't that magical.......

The real price of gas will remain exactly what it always was. Except now the entire cost will be reflected in the pump price instead of having some of it hidden by this admin's common wealth giveaways to the oil companies.