Tag Archives: Economy

Big Oil Does Not Receive Government Subsidies

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.

Top 10 Reasons BHO’s Presidency is a Failure

The outlook for BHO and his presidency continues to look dismal. People are coming up with reasons right and left why BHO is such a failure. Below are the Top 10 reasons why BHO’s presidency is a failure by Nile Gardiner of the UK’s Telegraph. He is pointing out what we on the right knew all along. Liberals tend to employ liberal policies which lead to liberal failures which lead to liberals  blaming everyone from predecessors to those of us on the right. Liberals can never admit that liberalism does not work. Just look at any third-world country, European country, or city run by Democrats (am I being redundant?). They are always in debt, screaming for higher taxes on the rich so they can buy and control the poor by the means of the hand out. This is never sound economic policy because it seeks to provide for those who are poor, and keep them poor. This is degrading to the poor because it keeps them in bondage to the state. They are basically slaves of the state, see the post below this one.

The biblical principles for the poor was to help them, but to do so in order that they learn to help themselves. Welfare does not do this, it intends to keep the poor coming back to the state. Even in the Old Testament, those who had land and were rich were to not harvest the corners of their fields so the poor could come and harvest what they needed. That provides dignity for them since they are gathering what they needed for themselves. In our system, the poor just have to stand in line and put up with low-level bureaucrats. Hardly any dignity there.

But again, those on the left are not really interested in helping the poor, just controlling them, and sticking it to the rich. They despise those who work hard, who have independent thought, who do not look to the government for all our sustenance and well being. What those on the left want, is us in bondage to government. Even if they get their way, it will not work. It will only lead to more failure. That is the evident world-wide. Just look at those countries that have socialized medicine, they are bankrupt and seeking ways to turn the health-care system back over to the private sector. So why do we want to let BHO run it?

Here are Gardiner’s reasons for BHO’s failure:

Here are 10 key reasons why the Obama presidency is in serious trouble, and why its prospects are unlikely to improve between now and the November mid-terms.

1. The Obama presidency is out of touch with the American people

In a previous post I noted how the Obama presidency increasingly resembles a modern-day Ancien Régime, extravagant, decaying and out of touch with ordinary Americans. The First Lady’s ill-conceived trip to Spain at a time of widespread economic hardship was symbolic of a White House that barely gives a second thought to public opinion on many issues, and frequently projects a distinctly elitist image. The “let them eat cake” approach didn’t play well over two centuries ago, and it won’t succeed today.

2. Most Americans don’t have confidence in the president’s leadership

This deficit of trust in Obama’s leadership is central to his decline. According to a recent Washington Post/ABC News poll, “nearly six in ten voters say they lack faith in the president to make the right decisions for the country”, and two thirds “say they are disillusioned with or angry about the way the federal government is working.” The poll showed that a staggering 58 per cent of Americans say they do not have confidence in the president’s decision-making, with just 42 per cent saying they do.

3. Obama fails to inspire

In contrast to the soaring rhetoric of his 2004 Convention speech in Boston which succeeded in impressing millions of television viewers at the time, America is no longer inspired by Barack Obama’s flat, monotonous and often dull presidential speeches and statements delivered via teleprompter. From his extraordinarily uninspiring Afghanistan speech at West Point to his flat State of the Union address, President Obama has failed to touch the heart of America. Even Jimmy Carter was more moving.

4. The United States is drowning in debt

The Congressional Budget Office Long-Term Budget Outlook offers a frightening picture of the scale of America’s national debt. Under its alternative fiscal scenario, the CBO projects that US debt could rise to 87 percent of GDP by 2020, 109 percent by 2025, and 185 percent in 2035. While much of Europe, led by Britain and Germany, are aggressively cutting their deficits, the Obama administration is actively growing America’s debt, and has no plan in place to avert a looming Greek-style financial crisis.

5. Obama’s Big Government message is falling flat

The relentless emphasis on bailouts and stimulus spending has done little to spur economic growth or create jobs, but has greatly advanced the power of the federal government in America. This is not an approach that is proving popular with the American public, and even most European governments have long ditched this tax and spend approach to saving their own economies.

6. Obama’s support for socialised health care is a huge political mistake

In an extraordinary act of political Harakiri, President Obama leant his full support to the hugely controversial, unpopular and divisive health care reform bill, with a monstrous price tag of $940 billion, whose repeal is now supported by 55 per cent of likely US voters. As I wrote at the time of its passing, the legislation is “a great leap forward by the United States towards a European-style vision of universal health care, which will only lead to soaring costs, higher taxes, and a surge in red tape for small businesses. This reckless legislation dramatically expands the power of the state over the lives of individuals, and could not be further from the vision of America’s founding fathers.”

7. Obama’s handling of the Gulf oil spill has been weak-kneed and indecisive

While much of the spilled oil in the Gulf has now been thankfully cleared up, the political damage for the White House will be long-lasting. Instead of showing real leadership on the matter by acing decisively and drawing upon offers of international support, the Obama administration settled on a more convenient strategy of relentlessly bashing an Anglo-American company while largely sitting on its hands. Significantly, a poll of Louisiana voters gave George W. Bush higher marks for his handling of the aftermath of Hurricane Katrina, with 62 percent disapproving of Obama’s performance on the Gulf oil spill.

8. US foreign policy is an embarrassing mess under the Obama administration

It is hard to think of a single foreign policy success for the Obama administration, but there have been plenty of missteps which have weakened American global power as well as the standing of the United States. The surrender to Moscow on Third Site missile defence, the failure to aggressively stand up to Iran’s nuclear programme, the decision to side with ousted Marxists in Honduras, the slap in the face for Great Britain over the Falklands, have all contributed to the image of a US administration completely out of its depth in international affairs. The Obama administration’s high risk strategy of appeasing America’s enemies while kicking traditional US allies has only succeeded in weakening the United States while strengthening her adversaries.

9. President Obama is muddled and confused on national security

From the wars in Afghanistan and Iraq to the War on Terror, President Obama’s leadership has often been muddled and confused. On Afghanistan he rightly sent tens of thousands of additional troops to the battlefield. At the same time however he bizarrely announced a timetable for the withdrawal of US forces beginning in July 2011, handing the initiative to the Taliban. On Iraq he has announced an end to combat operations and the withdrawal of all but 50,000 troops despite a recent upsurge in terrorist violence and political instability, and without the Iraqi military and police ready to take over. In addition he has ditched the concept of a War on Terror, replacing it with an Overseas Contingency Operation, hardly the right message to send in the midst of a long-war against Al-Qaeda.

10. Obama doesn’t believe in American greatness

Barack Obama has made it clear that he doesn’t believe in American exceptionalism, and has made apologising for his country into an art form. In a speech to the United Nations last September he stated that “no one nation can or should try to dominate another nation. No world order that elevates one nation or group of people over another will succeed. No balance of power among nations will hold.” It is difficult to see how a US president who holds these views and does not even accept America’s greatness in history can actually lead the world’s only superpower with force and conviction.

There is a distinctly Titanic-like feel to the Obama presidency and it’s not hard to see why. The most left-wing president in modern American history has tried to force a highly interventionist, government-driven agenda that runs counter to the principles of free enterprise, individual freedom, and limited government that have made the United States the greatest power in the world, and the freest nation on earth.

This, combined with weak leadership both at home and abroad against the backdrop of tremendous economic uncertainty in an increasingly dangerous world, has contributed to a spectacular political collapse for a president once thought to be invincible. America at its core remains a deeply conservative nation, which cherishes its traditions and founding principles. President Obama is increasingly out of step with the American people, by advancing policies that undermine the United States as a global power, while undercutting America’s deep-seated love for freedom.

Something has to give. We cannot continue down this road because BHO is destroying this country. Hopefully, in November he will become a lame duck, completely neutered of any real power.

BHO Ranked Worst President in 100 Years!

Not that I’m surprised. But now it is official. Even though he is not even 2 years into his presidency, BHO has earned the worst ranking as a president in the last 100 years, beating out the likes of Presidents, Nixon, Carter, LBJ, Warren Harding, Herbert Hoover and Woodrow Wilson.

Here is what John Hawkins writes about why BHO is the worst.

1) Barack Obama (D): It’s impossible to fully evaluate Barack Obama’s presidency because it’s not over, but he has already done a devastating amount of damage in a freakishly short period of time. Happily, there’s still some hope that the utter destruction of the American health care system that he’s trying to implement can be reversed. The socialistic takeovers of whole segments of American industries that began in the final days of the Bush Administration and expanded under Obama can also still hopefully be reversed in the coming years. Additionally, we can still hope against hope that Iran will be stopped from getting nukes, that Obama won’t lose the wars in Iraq and Afghanistan, and that none of his other disastrous policies like Cap and Trade will be passed. (The word “hope” comes up with Obama as often today as it did during his campaign, just in a different context)

However, Obama’s massive expansion of spending and government for domestic purposes is not only unique in American history; it came at the worst possible moment. At a time when there were genuine concerns in America and across the world that our country no longer has the intention or even the capability of paying off our debt, Barack Obama massively increased spending under the auspices of fighting a short term recession. In this case, the cure is almost certainly worse than the disease. Could America default on her debts because of what Obama is doing? Absolutely. Could this spending be the reason future generations of Americans aren’t as prosperous as their parents? Certainly. Is it possible that we’re literally experiencing the turning point that will take America from super power to economic basket case? Yes. This country is now facing its greatest moment of risk since World War II and it’s an entirely self-inflicted wound.

Hopefully  we will begin to heal this wound when he is rendered powerless with a conservative Congress in 2011.