A lot of lip flapping going on and We all suffer from pain at the pump….we bitch and we moan and we drive down the driveway to pick up the morning paper……we are a country of addicts…..gas addicts!
one of my pages describes this…..lobotero.wordpress.com/will-the-addic… …..I wrote this about 4 years ago and it is all repeating itself as it has time after time…..
And then when things are offered up the attack machine goes into full swing….like to end all subsidies to oil companies…..
Obama has proposed eliminating subsidies to oil and gas companies, which the administration pegs at $4 billion. Republicans have argued that they are necessary to keep the energy industry competitive and encourage domestic oil exploration.
A Boehner spokesman quickly shot down the possibility that the speaker was moving closer to the president’s proposal.
“The speaker wants to increase the supply of American energy and reduce our dependence on foreign oil, and he is only interested in reforms that actually lower energy costs and create American jobs,” Boehner spokesman Michael Steel said. “Unfortunately, what the president has suggested so far would simply raise taxes and increase the price at the pump.”
Oil prices are controlled by speculation and there is an answer to that problem also…..
The Wall Street reform law enacted last year required the commission to impose so-called position limits, which would restrict the amount of oil that speculators could trade in the energy futures market. The law called for the tough new regulations to take effect by Jan. 22. The commission balked. Now, three months later, the price of gasoline has gone up 80-cents a gallon because of the commission’s hands-off approach to the markets it is supposed to regulate.
Only two of the five sitting commissioners support strong limits that the new Wall Street law envisioned. It takes three commissioners to adopt a new rule. The president, Sanders said, should insist that the law be enforced and demand the immediate resignation of commissioners who refuse to do their job.
You may not appreciate the financial reform bill that was signed into law last year, but there is a way to control the price of gas and to blame Obama ‘s war on subsidies as the reason for raising gas prices is just plain WRONG!
Even Goldman-Sachs has reported that the rise in gas prices is caused by speculators…..and to allow it to continue will bring any economic recovery to a grinding halt…..so to oppose any effort to get these speculators to cool down is NOT in the best interests of the country….
But a economist with Platts and energy information group has said and he should know….
The tax breaks on oil are part of the endless discussion about how to tax an economic activity. Do you tax it at 0%? Do you tax it 100%? Or do you tax it in between? You want to tax it at the rate that provides the most money for the government while not inhibiting economic activity.
But that is not a subsidy. My demand for oil isn’t going to change one iota because of the changes that are under consideration, and therefore it won’t change the price of gasoline.
Oil companies will argue that the changes in the tax rate could change supply. Now you could build some theoretical model that says, if the tax rate is changed, it MIGHT inhibit production, and therefore down the road, supplies would be less than they would be otherwise. Therefore, the price could be higher and my demand might be less. This is not as crazy as it sounds. If the rate on these forms of exploration went to 100%, obviously, no company would produce that oil, the overall market would tighten, and the price could go up. But that’s not in question; the administration is not proposing a 100% tax rate.
There you are…..we have an answer….now just DO IT! You want to cut spending….then start here and prove that you Repubs are not anti middle class….just a thought!
