Venom and oil

Venom and oil

Summary: The Republicans and Democrats are not happy with one another, and today's argument over a proposed energy bill in the House is bringing out the nasty.One Texas Republican is shocked by the "venom" he hears toward the oil industry.

TOPICS: Tech Industry

The Republicans and Democrats are not happy with one another, and today's argument over a proposed energy bill in the House is bringing out the nasty.

One Texas Republican is shocked by the "venom" he hears toward the oil industry. Meanwhile Democrats are trying to add $16 billion in new taxes on the oil companies. The vote may come this weekend.

Of course, the White House has already promised a veto of either energy bill, the one passed by the Senate and the version now before the House.

Topic: Tech Industry

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  • Are you sure about the $16B in New Taxes?

    I haven't seen the wording of the proposed bill (that has little chance of passing anyway) but an earlier version called for the suspension of special Tax Breaks that oil producers were granted back in the mid-80's. The reason I'm curious is that those special tax breaks should add up to about $16-18 Billion in 2007. In other words, if you were an oil producers and the government took away your corporate welfare, you'd call that a new tax.

    I realize that there is so much word play in Washington - where not cutting a tax is considered by some to be a tax increase, where no one seems to understand that every dollar spent results in a dollar (or more) of tax to someone at some time - it's hard to tell what lawmakers are really saying.
    • Just curious

      How much do you want to pay for gas because you can bet the oil companies aren't going to pay for that, the consumers are going to pay for it.

      I always find it interesting how supposedly intelligent people appear to not have a clue about the functioning of the economy. If you make it more expensive to make an item then you make that item cost more. So in your zeal to "get" big oil the only people you actually get is yourself, your neighbor, your friends and your family by making them pay more for goods and services because it requires energy to deliver those goods and services and the cost of that energy includes those taxes you want to use to "stick it to big oil". So take a look at your family and tell yourself that the overtime you'll have to put in to maintain their standard of living is worth that extra tax.
  • Energy

    This will - almost unbelievably -- come as news to some, even or perhaps especially some on the Hill, but there is no magic wand in the reality we inhabit. Ergo, we users are going to pay at the pump for any punitive new tax levied on oil companies. There is no good current substitute for oil, meaning that all the alternatives cost more, and guess who pays when Government mandates them.
    Jack in Maryland
  • New taxes on energy companies = higher energy bills

    New taxes on energy companies = higher energy bills for the consumer.
    • Really ?

      What gives you the idea that they won't raise energy bills anyway ?
      Or do you actually believe supply and demand is what sets prices ?
      If so, I have some nice land to sell you in Iraq.
      • Amazing

        Yep here's yet another amazing bit of analysis by somebody who has absolutely no understanding about how manufacturing or refining works as a business. So tell me, oh Adam Smith, what is going to happen to fuel prices when you make it more expensive to make and market that fuel? Do you in your dim perception of the world honestly think that the oil companies are just going to eat that bite out of their profits? Or might they pass it along.

        And given the ignorance of your supply statement I'm curious do you know who runs the price of oil up when there is or might be a shortage? It isn't the oil companies it's something called the futures market where speculators bet that a shortage is going to occur thus buy future oil production output at the current price then sell it at a higher price. The oil companies aren't the ones that set that price it's the futures market. So in typical leftist zeal you have stabbed precisely the wrong industry for something they had absolutely nothing to do with other than selling their product to the highest bidder. It's those bidders who are nothing more than speculators who drive the prices up.
  • Supply and Demand

    Translation of " Supply and demand " - we control the supply, therefore, we demand more money.

    How does rolling back tax breaks for companies that are raking in [b]obscene[/b] profits translate to a tax increase ?
    An [b]honest[/b] Congress would [b]mandate[/b] that said taxes
    can [b]not[/b] be passed on to the Consumer.

    Sadly, there is no [b]honest[/b] Congress, rather, there's one that is controlled by Lobbyists. When Congress is sworn in, this is what they are actually saying ...
    " [i]By the Corporations, for the Corporations, so help me [b]Greed[/b][/i] "
    • Hmmm, define obscene?

      You do realize that oil companies make between 7 and 10 percent profit on a barrel of oil. Last time I checked a 10% margin is pretty dang thin. The fact they sell a lot of product is what you seem to want to penalize them for. So explain to me oh mighty economist, what happens to the price of a product when you increase the cost of production and marketing that product? I realize this is a radical concept but you do realize that oil companies aren't in business to lose money.

      You'd think that somebody with reasonable intelligence would do a little research before swallowing the communist er democratic party line.