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Sunday, March 22, 2009

Obama Rhetoric Vs Reality of Cap and Trade, and Taxes On Energy

The TRUTH about the outcome.

Hey folks,

The Obama Administration and the Congress of Pelosi and Reid want you to believe that Big Oil is making too much profit, and they are going to make things fair. They are going to put in place a better Taxation policy along with a Cap and Trade. They say that this will help create new "Green Jobs" and speed up the process of Alternative Energy production and use.

That is the Rhetoric. How about we look at the FACTS.

According to our friends over at Energy Tomorrow:

The Administration's fiscal 2010 budget proposal calls for at least $400 billion in new taxes and fees on the oil and natural gas industry, including a significant portion of the revenues that would be raised from a carbon cap-and-trade system. The tax portion of the budget proposal includes at least $80 billion in new taxes on the U.S. energy sector over the next decade.

These new taxes and fees could mean less U.S. energy production, fewer American jobs and less revenue for federal, state and local governments at a time when we desperately need all three. These punitive measures could also threaten the retirements of tens of millions of Americans with mutual funds, pensions and retirement plans that invest heavily in U.S. energy companies.

In outlining their agenda for energy and the environment, the Administration has declared that they want to reduce America’s dependence on foreign oil by creating millions of new jobs in the energy sector, encouraging the development of renewable and alternative sources of energy and promoting the responsible production of domestic oil and natural gas resources. The American oil and gas industry agrees with this approach. After all, the U.S. Department of Energy has forecast that to meet global energy demand in the coming decades, we will need to develop increasing amounts of energy from all sources, including renewables, alternatives and traditional fossil fuels like oil and natural gas.

Unfortunately, recent actions don't match the rhetoric; and too often the rhetoric is used to confuse the reality of America's energy challenges.


Lets look at some of these shall we?

RHETORIC: Taxes need to be raised to help address the growing federal deficit and stimulate job creation.

REALITY: Raising taxes in a time of economic decline is a recipe for disaster. President Hoover did it in the 1930s, President Carter did it in the 1970s and President Obama wants to do it now. This is simply the wrong choice. Tax hikes kill existing jobs and can depress future job creation. According to a preliminary estimate based on Center for American Progress data, thousands of oil and gas jobs would be destroyed by the Administration’s new taxes and fees.

RHETORIC: Taxes targeting the oil and natural gas industry are okay because they don't affect consumers or other industries.

REALITY: The Administration’s tax plan puts the economic burden on hardworking Americans and their families. Higher industry taxes could result in less, not more, job security, make health care more expensive for American workers and threaten other benefits. Higher taxes steal money from the American household and are a burden felt throughout the entire economy, discouraging business expansion, investment and job creation.


Not to mention the higher price of all FORMS of energy from the gas pump to that of powering and heating your homes.

RHETORIC: Most Americans want the federal government to pursue alternative and renewable sources of energy.

REALITY: A recent poll found that 61 percent of Americans who voted in the 2008 presidential election support increased access to offshore oil and natural gas resources. The Administration is not listening to the majority of Americans who want a stronger economy using our own vast oil and natural gas resources. While other countries are providing incentives to develop their own energy resources, the U.S. is the only country actively discouraging it. Higher taxes would also rob the industry of additional capital needed to invest in alternative and renewable fuels.

RHETORIC: The Administration says it wants to make America less dependent on foreign oil.

REALITY: Historically, higher taxes have resulted in less domestic energy – and restrained supplies often lead to higher energy costs for consumers. In today’s economy, that could stifle a recovery and make Americans more dependent on foreign oil and natural gas. New taxes will make it more expensive for oil and natural gas companies to expand or initiate new exploration and development programs, putting our nation further behind in the race for more energy.

RHETORIC: The Administration says it wants to create millions of new jobs in the energy sector.

REALITY: Saddling the industry with additional taxes would likely drive jobs overseas at a time when America needs to create jobs. The U.S. oil and natural gas industry is one of the success stories of the American economy, directly and indirectly supporting 6 million workers in good jobs that often pay well above the national average. It is not an economic recovery when the jobs of millions of industry workers in this country are placed in jeopardy.

RHETORIC: Oil and natural gas industry executives control the bulk of stocks in their respective companies and would be the only ones directly affected by higher taxes.

REALITY: Imposing new taxes on oil and natural gas companies undermines the retirement security of working people. Almost 43 percent of oil and natural gas company shares are owned by mutual funds and asset management companies. Those funds are a major retirement savings and investment tool for millions of middle-class Americans who are watching their retirement savings shrink. Billions of dollars in new taxes on U.S. oil and natural gas companies will only hurt those retirement-aged investors looking for financial stability.

As a matter of FACT, if YOU have a 401 K, you may also be one of those that PROFIT from Oil Industry Profits. YOU. Not some fat cat sitting in a mansion somewhere.

You see folks, this is why some many people are against the House setting this precedent of 90 percent taxation against just those that took bonuses from AIG. This means that the Federal Government will now have the UNCONSTITUTIONAL authority to go after whoever they want using the tax laws. Even you. You make $250,000? OK. But anything over that, they may deem unreasonable and level the 90 percent taxation on you for every penny more than that. This also means that they can now target the Energy Industry, and a few in the industry, with completely illegal and unconstitutional taxation. They can in essence STEAL the profits away from private industries, and individuals, for their own greed and or need.

Any way you chose to look at this, the FACTS are clear. The Obama plan for the Energy Industry is a completely irresponsible one that is doomed to failure. Energy Tomorrow raps this up with this.

The bottom line is that imposing additional taxes on America's oil and natural gas companies will not lower energy costs nor help produce much needed supply. In fact, increased strain on U.S. energy companies will make it more difficult for the United States to compete for energy resources in the global market and threaten jobs here at home.

Tell Congress to oppose these increased taxes and fees on the industry.
Send a letter today.

I STRONGLY encourage you to do just that. Let these people in Congress that do not want to listen, that YOU understand what the TRUTH is and you want them to drop the insanity. Remind them who they actually work for. It is YOU. Let them know YOU, their Boss, do not want this. You want Gas Prices to remain reasonable. You want to be able to continue to have the Energy Costs of your home to remain reasonable. You want the 600,000 new jobs that MORE Domestic Drilling, not less, WILL create. You WANT the extra Trillion Dollars that this will also produce. You do NOT want to see even more jobs lost, revenue lost, and YOUR Retirement effected.

As I keep telling you folks, YOU have the power. Regardless of the fact they do not want to listen to you. Regardless of the fact they have an agenda. Regardless of the fact they THINK they are in total control and can do whatever they want, YOU hold the power to vote them out in less than to years. They need to start listening, or they will no longer have the job they have. YOU can make this happen. YOUR future, the future of our energy independence, and the future of our energy prices, lie in YOUR hands.
Peter

Sources:
Energy Tomorrow
API

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