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Sunday, February 08, 2009

Another Example Why Tax Increases Kill Jobs

Here is some interesting FACTS.

Hey folks,

You know there are still some in Government that are pushing, behind the scenes that is, for a Windfall Profit Tax on Big oil? They are. Now I will not waste too much time going over the history of Windfall Profits as I did in the past, let's just say, if a tree falls due to a storm, you get to use it. It profited you. But you were not allowed to cut it down. In other words, you do nothing, something comes alone, and you profit from it.

The Oil companies do far from nothing to make what they do. They seek, find, refine, and provide what YOU use everyday. All this cost more money than most can fathom. The profit they make is reasonable when you compare it to what they spend.

Yet, the Left has used Class Warfare to convince some in this country that the profits that the Oil Companies get, are unfair to the average worker. In other words, the huge profits they make must be capped or shared with others to make it fair.

Well, our friends over at Energy Tomorrow just completed a study showing just WHAT Windfall Profit Taxes WILL do, if they get there way. Energy Tomorrow - Windfall Profits Tax Could Hurt Economy, Jobs

The imposition of new taxes on the oil and natural gas industry likely could kill hundreds of thousands of jobs, slow economic growth and make Americans more dependent on foreign sources of energy,

The CRA International study, commissioned by the American Petroleum Institute, underscores how ill-advised tax policy would likely result in less domestic oil and natural gas production – which would likely undermine both the nation’s economic and energy security. While there is no specific windfall profits tax proposal being considered by the Congress, the CRA analysis focuses on the windfall profits tax to illustrate that a similar tax or combination of taxes could have negative consequences for the U.S. economy.

“U.S. dependence on foreign oil could be magnified over the next 20 years if the oil and gas companies face the prospect of higher taxes that reduce returns on new investments,” said W. David Montgomery, a vice president at CRA, who conducted the study. “Although this study has specifically assessed the impact of a proposed windfall profits tax, similar forms of increased taxation or other policies that reduce incentives for new investment would be expected to have similar negative consequences.”

The study also found that a windfall profits tax likely would:

Cause a net loss of up to 490,000 U.S. jobs by 2030.

Reduce U.S. gross domestic product by roughly 1 percent, or $240 billion by 2030.

Increase U.S. imports of crude oil by up to 18 percent in 2030 and reduce U.S. domestic production of crude oil by up to 26 percent in the same year.

“Any taxes or combination of taxes similar to a windfall profits tax would likely undermine the nation’s energy security by discouraging domestic production and would hurt the economic security of Americans by reducing household incomes and job opportunities,” said API President Jack Gerard. “Especially in these tough economic times, we need policies that spur economic growth, create jobs and encourage the development of oil and natural gas resources that belong to the American people.”

Read the press release on the WPT study.

All too true. All the facts back up what this report shows. The Left seem to think that all they have to do is throw money at whatever problem they are trying to fix. It NEVER works. Never has in the history of them trying. Then they have to take MORE of YOUR money to pay for it.

We have already seen Obama put into place a plan that WILL hurt the Auto industry more than it is now. Take over private business, even coming right out and declaring that those owning and running these PRIVATE business will only be allowed to make $500,000 a year. Now we stand on the verge of the biggest Pork Bill, which WILL force the largest tax increase, in HISTORY.

All this in just the first three weeks. Have you noticed the price at the pump creeping back up? Remember Obama said he was in favor of high gas prices? When ask if he thought $4.00 at the pump was good, he said this.

BARACK OBAMA: "I think that I would have preferred a gradual adjustment. The fact that this is such a shock to American pocketbooks is not a good thing. But if we take some steps right now to help people make the adjustment, first of all by putting more money into their pockets, but also by encouraging the market to adapt to these new circumstances more quickly, particularly US automakers, then I think ultimately, we can come out o f this stronger and have a more efficient energy policy than we do right now."

Well he just screwed the Auto Industry, and could not care less about drilling right now. He LIKES the prices going up GRADUALLY. Will he call for more taxes and more Kook regulations on the Oil Industry? He may. However, that will not be a good thing. Regardless of what he may think.
Peter

Sources:
Energy Tomorrow -
Windfall Profits Tax Could Hurt Economy, Jobs
Standard Newwire - Barack Obama's 'Gradual Adjustment' to Higher Gas Prices

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