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Categorized | Health, News, Opinion

The Myth of Oil Subsidies

President Obama and the Democrats have been spreading falsehoods about supposed Oil “subsidies”. The truth is, Bog Oil Companies do not receive subsidies.

A subsidy is a government payment, usually for doing nothing. Like welfare or payments not to grow crops.

Oil companies simply get tax deductions like every other business. Not subsidies.

Only in the insane world of the Progressive mind could being allowed to keep more of your earnings – even if you are an oil company – be called a subsidy.

What these tax deductions do is encourage things like equipment, machinery and vehicles to be replaced faster than it might otherwise be done. When these items are fully depreciated, businesses are incentivised to to replace them rather than hold onto them for a few more years through tax deductions.

So what Obama wants to do is target the oil industry for higher taxes and fewer deductions, not eliminate of subsidies, because none exist.

And we all know the result. Lower profits due to taxes will be replaced at the pumps in higher prices.

And worse, oil companies will slow down purchases of machinery, tools, vehicles and other items. Which will make a pretty large impact on the rest of the economy – in a negative way.

The fact is, the more money oil companies make, the more money they pay in taxes.

And now, Vice President Joe Biden has again hit the stupid switch and called for a Global Minimum Tax so that US Taxpayers can stop subsidizing companies investing in other countries.

Huh? Man, you gotta be smoking some powerful stuff to follow that logic!

A country with lower taxes and labor costs is attractive to American businesses for simple economic reasons. They have lower taxes and labor costs. Duh!

And this is somehow American taxpayers subsidizing overseas investments? The obvious answer is to reduce American Corporate taxes and use a little common sense in wages and benefits. Unions drive more businesses out of the country then anything else. We should start by throttling back Union wages and benefits.

If the only way Americans can compete in a global economy under the Obama Administration is to force other countries to raise taxes, there is a far simpler answer. Get rid of Obama!

These people are absolutely insane. Do they really believe this tripe? Are we destined under Obama to resort to forcing other countries to raise taxes in order to make American businesses competitive? Are punitive taxes and tariffs the only Americans can compete?

Obama came into office promising a level playing field. Most people thought that entailed removing barriers, not punishing success with overly burdensome regulations and higher taxes! If the only way the “green” energy sector can compete with the conventional energy sector is to tilt the field in favor of the greenies, that is not a level field. That is forcing prices higher and higher to make unfeasible energy sources competitive.  That is not fair. That is not level.

And the consumer gets screwed.

There is a reason the Democrats didn’t use the same logic on Obamacare. Taxing the Doctors and Hospitals wouldn’t help the price of insurance at all. It would make it worse. Removing tax deductions from Hospitals and Insurers would also make prices higher.

How odd that Progressives think this will work for oil companies and not Health Care.

But then, they are not trying to put Doctors and Hospitals out of business. Only big oil.

 

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog.

Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

6 Responses to “The Myth of Oil Subsidies”

  1. The Quadfather says:

    The best way to explain the legitimacy of tax deductions, is to point out that when you spend money on equipment, required to make money, you really didn't make that money. You wouldn't have needed the equipment if it weren't for the act of trying to make money. Even if the money for the equipment came from profits from the oil extracted, once spent on the business, it is no longer profit, therefore no longer taxable. Obama and company think we're stupid. Apparently his constituents, the ones that remain, are.

  2. daveburton says:

    "Bog Oil" Companies? Are those companies that make oil from peat bogs?

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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