It’s been a long time since I made a post on one of my favorite industries: Big Oil. As many of you know, I’m a supporter of Big Oil, the jobs that the oil industry provides and the benefits to society that big Oil provides. For instance, if your blood is beginning to boil at that statement, remember, that the internet is made possible by Big Oil. The computer you are using is made from oil by products.
The latest charge by the Obama Administration is to remove government subsidies from Big Oil. This is another one of his political tactics to attack the rich and productive of society in order to elicit emotional support from the less than productive and thoughtless of society. The reason this is true is because Big Oil doesn’t receive government subsidies according to The Daily Caller:
Given the recent publicity surrounding this issue, this statement may come as a surprise, yet it is 100 percent true. Also true is that the industry pays more than $86 million to the government every single day and has an effective income tax rate of 41 percent. Why then have so many readily bought the notion that the taxpayers are supporting this highly profitable industry?
A fundamental pillar of the U.S. income tax system is that businesses are taxed only on net income. This means that there needs to be some practical method for businesses to recover costs. There are many tax code provisions that allow companies to recover their costs, but tax deductions and cost recovery mechanisms should in no way be confused with subsidies.
This is like saying that since churches do not pay taxes on their income, they receive government subsidies. The principle behind churches not paying taxes is that we are to render unto Caesar what is Caesar’s and unto God what is Gods. The money collected by the church belongs to God, not the government. For churches to pay taxes on that money would be in effect causing God to pay taxes. Yet those who are opposed to churches not having to pay taxes, like business and corporations do, use this to say that churches are receiving subsidies from the government. No, they are receiving nothing from the government but keeping what is rightfully theirs. (See here for more on this.)
The same is true with Big Oil. They are paying taxes on their incomes. But when they take a loss, or buy equipment, the cost of the equipment is allowed to be used to weigh against their overall income. In other words, if they make $100, but part of the equipment used to make that $100 cost them $75, then they can deduct that from their income and only pay taxes on the $25. This tax code is available to everyone, not just Big Oil. Big Environmental benefits from these tax codes as well. So to say that Big Oil is receiving subsidies from the government is false.
This charge is just another ploy by the Obama Administration to attack the rich/wealthy and productive of our country as he seeks to tear down our economy. Please do not listen to his lies. His agenda is radical and he is seeking to punish our country for being too successful. If Obama really wanted to help our country, he would approve the Keystone Pipeline (which he is opposed to because the pipeline would hurt the railroad company owned by his buddy, Warren Buffett), he would also approve more drilling permits. That alone would increase the number of jobs in the U.S. and start us on the road to a healthy economy. Instead, he wants to tax more people so he can funnel more money into environmental companies that show no profit, but funnel money back into the Democratic National Committee coffers.
So the next time you are in line to fill up your tank with gasoline, and you are shocked at the sticker price, remember these gas prices belong solely to President Obama. His energy policies have continued to come up short with his hopes and dreams of new energy sources, while attacking that which is proven to be effective. When he tries to blame members of Congress, President Bush, Ronald Reagan, Rush Limbaugh, his childhood, etc., don’t listen to him. He owns the prices at the pump. He owns the division we have in the country. He owns the sorry economy we have. He owns the high unemployment. The buck stops with him.