"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not." ~~Thomas Jefferson

"Who will protect us from those who protect us?"

Rightful liberty is unobstructed action according to our will within limits drawn around us by the equal rights of others. ~ Thomas Jefferson

"None are so hopelessly enslaved as those who falsely believe they are free." ~~Goethe

18 March 2012


Verbatim Post.

Associated Press

President Barack Obama is calling anew on Congress to end tax subsidies for the oil and gas industry, saying the nation needs to develop alternative sources of energy in the face of rising gasoline prices.

Obama said Saturday in his weekly radio and Internet address that he expected Congress to consider in the next few weeks halting $4 billion in tax subsidies, something he hasn't been able to get through Congress throughout his presidency. He said the vote would put lawmakers on record on whether they "stand up for oil companies" or "stand up for the American people."

"They can either place their bets on a fossil fuel from the last century or they can place their bets on America's future," Obama said.

Industry officials and many Republicans in Congress have argued that cutting the tax breaks would lead to higher fuel prices, raising costs on oil companies and affecting their investments in exploration and production. The measure is considered a long shot in Congress, given that Obama couldn't end the subsidies when Democrats controlled Congress earlier in his term.

Republican presidential candidates have accused Obama of delaying drilling for oil in the Gulf of Mexico and in a national wildlife refuge in Alaska and faulted him for not advancing the Keystone XL oil pipeline from Canada to Texas Gulf Coast refineries. They have also criticized policies pursued by the Environmental Protection Agency as inhibiting energy development.

Obama said there is no quick fix to high gas prices, which climbed to $3.83 on Friday according to AAA, but he pushed back against critics who say he is opposed to more drilling. He said the U.S. is producing more oil than at any time in the past eight years and has quadrupled the number of operating oil rigs.

"If we're truly going to make sure we're not at the mercy of spikes in gas prices every year, the answer isn't just to drill more _ because we're already drilling more," Obama said. He said his administration was trying to develop wind and solar power, biofuels and usher in more fuel-efficient vehicles to make the nation less dependent on oil.

In the weekly Republican address, Rep. Cory Gardner, R-Colo., said his constituents have been hard hit by an increase in gasoline prices and were "fed up with the way the president is handling this issue, and rightfully so. The most forceful thing the president has done about high gas prices is try to explain that he's against them."

Gardner said the $800 billion stimulus spending sought by Obama promoted energy companies that went bankrupt, wasting taxpayer money.

"After spending money we don't have on what won't work _ and overregulating what would _ is it any wonder gas prices have more than doubled on the president's watch? Make no mistake, high gas prices are a symptom of his failed `stimulus' policies," Gardner said.

Obama is expected to keep up a drumbeat on energy this week, traveling to four states over two days to push his administration's "all of the above" energy strategy. The trip includes stops in Nevada, New Mexico, Oklahoma and Ohio.


Subsidies are a touchy item.  Take away the subsidies and taxes should go down, right?  Wrong.

Take away subsidies and prices go up.  Some go up to the point that the item or product being subsidized is no longer affordable to the average person.  Milk.  Grain.  Oil.

People still have to eat.  And drive.

Your taxes won't go down.  They will be redirected to the same place they are being redirected to today.   That would be to the 47% who currently pay no Federal income taxes.  It will go in larger volume to those who collect their "unearned entitlements".

You and me?  We'd pay the $8 for a gallon of gasoline.  Or for a gallon of milk.  Along with the $10 for a pound of ground beef.  How much do you think food prices would go up if subsidies were cut?  How about the cost of transporting that food to your local grocery?  Everything that we consume today in this country, in this world, is transported by truck or some other conveyance that burns an oil product.

Changing to biodiesel or electric doesn't minimize the need for fuel.  It simply makes it more expensive.  Like wind power.  A wind generator is very expensive.  I believe that the life expectancy of a wind generator is about 10 years.  The same as the payback time.  While wind generators are being erected all around the midwest, they are being abandoned elsewhere in the country.  Not cost effective.  Seems like that old definition of insanity...  "Doing the same thing over and over again expecting a different result".  Perhaps that's a subsidy that should go away?

It's disingenuous for our government to tell us that budgets will be decreased if subsidies are cut.  It's just another lie.  They will still collect and spend that money.  And more.  It will still go to "unearned entitlements".  It's easier than putting those people who are long term recipients of said entitlements to work.

I realize that this is an oversimplification of the issue. Not everything needs to be so complicated.

Stay safe.


Brock Townsend said...

Seems to me he's badly underestimating what will be the outcome of the coming election if gas skyrockets.

Blue said...

I get the impression that he doesn't really care. That isn't a good thing for us, him not caring. Could mean a lot of things, none of them good.