Democrats push to end big oil's tax b...

Democrats push to end big oil's tax breaks

There are 4 comments on the story from May 10, 2011, titled Democrats push to end big oil's tax breaks. In it, reports that:

Senate Democrats announced a plan Tuesday to eliminate federal tax breaks to the five biggest oil companies and use those savings, estimated at $21 billion over the next 10 years, to help cut the deficit.

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Carol Stream, IL

#1 May 10, 2011
Stupid. Really stupid.

Gas will cost more. They will hire fewer people. Stockholders, many of which are retirement plans and seniors, will get a smaller return.

This is just another way to raise taxes on PEOPLE.

BTW: The Feds take 18.4 cents on every gallon, the companies make 2 cents.
Owl Gore

Monroe, LA

#2 May 12, 2011
This A-team of financial sophisticates has taken a hard look at rising gasoline prices and concluded that the most reasonable course of action is to increase the cost of producing oil by "closing tax loopholes" for the five biggest oil companies. Why the five biggest? Why not four or six? Why not all oil companies? Because this is not a bill about tax reform, but a bill about Democrats' bitterness and impotency in the face of unpleasant economic realities.

The first thing you should know about these oil-company loopholes is that the main items under discussion are not exactly oil-company loopholes. In 2004, Congress enacted an ill-considered tax break for manufacturing companies — one of many harebrained efforts to improve the U.S. economy by empowering politicians to hand out favors to their friends — and the definition of manufacturer was written in such a way as to cover just about any firm with investments in physical capital: Starbucks qualifies for manufacturers' benefits under the relevant section of the law, known as Section 199. If you hire a guy to build a diving board for your home swimming pool, he’s as much a manufacturer as General Motors.

Which is to say, it is a stupid law, but it is not a law that grants special privileges to oil companies. Congress would be wise to repeal Section 199 in its entirety. In truth, our corporate tax code is a Hieronymus Bosch nightmare of political favoritism, market distortion, and rent-seeking representing the worst aspects of the unsavory nexus between Big Business and Big Government. For that matter, so is the individual tax code, and both should be reformed in roughly the same way: by eliminating exemptions, deductions, and hamfisted attempts at imposing economic policy through the tax regime. Such an approach to reform would, intelligently applied, enable us to reduce tax rates without reducing tax revenue, a very happy result indeed for a great many taxpayers.

Don't count on that happening. The Democrats would rather use the tax code as an enemies list, and they're already fighting about what to do with the money they foresee expropriating from oil producers and, indirectly, from gasoline consumers. Some want to use the funds to pretend to reduce the deficit. Sen. Max Baucus (D., Mont.), getting in touch with his inner Barack Obama, has his eyes on the money, too, with big plans to use it to subsidize politically favored automobile manufacturers and enterprises engaged in the alternative-fuels business — as though one ethanol boondoggle and one GM bailout were not enough of a national embarrassment.

San Antonio, TX

#3 May 12, 2011
If the Obummer Administration wants to bilk (tax, steal, whatever word you choose) the oil companies out of their "profit", then IT (Obummer) should go "completely" Red (communist) and control the price at the pump to prevent the "government theft" from being made-up at the pumps. Go "all the way" to communism or "stay the hell out of the way" of America's "free enterprise" system that has worked for 235 years.
Owl Gore

Monroe, LA

#5 May 12, 2011
Obama's War on Oil

If you want the lower gas prices, lower oil prices, and lower energy prices necessary for a booming economy, you are going to have to get yourselves another President.

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