Monday, April 2, 2012

And now for some truth... on oil.

Obama and Biden have been LYING lately, for political purposes. "Oil drilling is at an all time high," but even their own graphs show the peak starting before he took office, based on permits issued by the Bush administration, and drilling on private land that does not require federal permits. They have not increased oil one drop.

"We need to end subsidies." They don't receive subsidies. Not one. Farmers get subsidies when food production is high, paying them not to produce. Oil companies? They get a corporate tax break. It's called a "manufacturer's credit." It's the same tax break GE, Ford, or any other manufacturer gets. What do they make? Gas.

"Ending the tax subsidies will help the poor." You mean the subsidies they don't get (see above)? No, it will help those that pay the bulk of the taxes, aka the richest 1 percent. In fact, it will hurt the poorest (as that lack of tax credit goes straight to the consumer's cost), because more of their welfare or Social Security checks will go toward paying for gas. And groceries (which are hauled by trucks, therefore their expenses go up). And it will further hurt places like the Gulf Coast, which in addition to losing most of thei jobs due to Obama policies, will also suffer from down tourism, as gas prices go so high less people will vacation, costing them tourist trade and further destroying their local enonomies.

"They made too much profit." They get a percentage of every dollar, so as prices go up, so do their profits. It's called economics. That percentage is standard, regulated by the government. For every dollar of gas, the local station gets less than a percent. The gas company gets a larger percent. The oil importers (like the Saudis) get their cut. But who get's the largest percentage? The Federal government. They put a high sales tax on gasoline. Really, really high. States also have their tax, but from every dollar, the Federal government gets the largest cut. Obama's solution to high gas prices? "Let's increase the size of our cut." He simply doesn't understand that the money has to come from somewhere, namely, the consumer.

I truly don't believe that Obama and Biden are maliciously deceitful (though I do believe Nancy Pelosi to be a generally malicious human being). I think they are that ignorant on how the real world works. That's why law professors and legislators make lousy presidents, from either party.

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