red states rule
02-16-2008, 07:02 AM
it must be in theri DNA. Dems have only one solution to every problem - raise taxes
Now the evil oil companies are in their gun sights, and if we will wind up playimng more at the pump if this insane plan ever sees the light of day
Pres Bush will veto it - but a Pres Obama would be happy to sign it
Muddled plan rises again
By H. Sterling Burnett
February 16, 2008
An old idea is being dredged up in Congress again — an idea that harms American productivity, competitiveness and our energy security. The House of Representatives will introduce a measure next week seeking to increase taxes on U.S. oil and natural gas companies. Not only will punitive taxes harm our nation's energy industry, any attempt to salvage this sunken idea shows just how little Congress learned from its previous mistakes.
Democrats tried the same play last December during intense debates over the energy bill. Eventually, Congress recognized the harmful effects punitive taxes would have on the future of U.S. energy security and the ill-fated effort was removed from the legislation.
While the bill President Bush ultimately signed was bad and will do little if anything to increase energy supplies or decrease prices, it could have been much worse had it contained the worn-out tax increases Congress is once again pushing. Raising industry taxes was a bad idea in December and is still a bad idea in February.
Indeed, experience shows that, when Congress raises taxes on the energy industry, prices rise as we become more dependent on foreign sources of energy. Why? The taxes reduce domestic production by making new energy development less attractive to investors and can only be imposed on domestic operations and production, leaving American companies less competitive with foreign firms.
Little has changed on the national or global energy stage that would warrant such an increase. And considering the dollars U.S. oil and natural gas companies already pay out, any future tax rise will do more harm than good.
According to the Energy Information Administration, in 2006, the top 27 energy producing companies paid more than $81 billion in income taxes. Industry income tax in 2006 — as a share of net income — averaged 41 percent. That represents an increase of 82 percent over just a two-year span. Other U.S. manufacturing industries pay roughly 22 percent.
Granted, the oil and natural gas industry is one of the largest industries in the world, so its income — and income tax — will indeed be hefty. But to pay nearly 50 percent in taxes is quite a penalty.
for the complete article
http://www.washingtontimes.com/article/20080216/COMMENTARY/157481856/1012
Now the evil oil companies are in their gun sights, and if we will wind up playimng more at the pump if this insane plan ever sees the light of day
Pres Bush will veto it - but a Pres Obama would be happy to sign it
Muddled plan rises again
By H. Sterling Burnett
February 16, 2008
An old idea is being dredged up in Congress again — an idea that harms American productivity, competitiveness and our energy security. The House of Representatives will introduce a measure next week seeking to increase taxes on U.S. oil and natural gas companies. Not only will punitive taxes harm our nation's energy industry, any attempt to salvage this sunken idea shows just how little Congress learned from its previous mistakes.
Democrats tried the same play last December during intense debates over the energy bill. Eventually, Congress recognized the harmful effects punitive taxes would have on the future of U.S. energy security and the ill-fated effort was removed from the legislation.
While the bill President Bush ultimately signed was bad and will do little if anything to increase energy supplies or decrease prices, it could have been much worse had it contained the worn-out tax increases Congress is once again pushing. Raising industry taxes was a bad idea in December and is still a bad idea in February.
Indeed, experience shows that, when Congress raises taxes on the energy industry, prices rise as we become more dependent on foreign sources of energy. Why? The taxes reduce domestic production by making new energy development less attractive to investors and can only be imposed on domestic operations and production, leaving American companies less competitive with foreign firms.
Little has changed on the national or global energy stage that would warrant such an increase. And considering the dollars U.S. oil and natural gas companies already pay out, any future tax rise will do more harm than good.
According to the Energy Information Administration, in 2006, the top 27 energy producing companies paid more than $81 billion in income taxes. Industry income tax in 2006 — as a share of net income — averaged 41 percent. That represents an increase of 82 percent over just a two-year span. Other U.S. manufacturing industries pay roughly 22 percent.
Granted, the oil and natural gas industry is one of the largest industries in the world, so its income — and income tax — will indeed be hefty. But to pay nearly 50 percent in taxes is quite a penalty.
for the complete article
http://www.washingtontimes.com/article/20080216/COMMENTARY/157481856/1012