Oil just got more expensive.
03-04-2009, 03:53 PM
#1
With The Resistance
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Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
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Oil just got more expensive.
US Treasury secretary attacks oil, gas tax breaks
Thu Mar 5, 2009 3:18am IST By Tom Doggett
WASHINGTON, March 4 (Reuters) - U.S. oil and natural gas producing companies should not receive federal subsidies in the form of tax breaks because their businesses contribute to global warming, U.S. Treasury Secretary Timothy Geithner told Congress on Wednesday.
It was one of the sharpest attacks yet on the oil and gas industry by a top Obama administration official, reinforcing the White House stance that new U.S. energy policy will focus on promoting renewable energy sources like wind and solar power and rely less on traditional fossil fuels like oil as America tackles climate change.
"We don't believe it makes sense to significantly subsidize the production and use of sources of energy (like oil and gas) that are dramatically going to add to our climate change (problem). We don't think that's good economic policy and we think changing those incentives is good for the country," Geithner told the Senate Finance Committee at a hearing on the White House's proposed budget for the 2010 spending year.
The Obama administration's budget would levy an excise tax on oil and natural gas produced in the Gulf of Mexico, raising $5.3 billion in revenue from 2011 to 2019.
This new 13 percent tax on all oil and gas production in the Gulf would only affect those companies enjoying a loophole that allows them to avoid paying royalties on the energy supplies they drill. Companies already paying royalties would get a tax credit.
Obama's budget would also place a $4 per acre annual fee on energy leases in the Gulf that are designated as nonproducing. The budget proposal projects the fee would generate $1.2 billion from 2010 to 2019.
Senator John Cornyn of Texas criticized the tax increases, saying they would hurt independent energy companies that provide a large share of U.S. oil and gas supplies.
"My view is that higher taxes on small and independent producers here in America will make us more dependent on imported oil and gas while we transition to cleaner energy alternatives, a goal we all share," said Cornyn. "And it will also hurt job retention and job creation in the energy sector, which provides an awful lot of jobs in this country."
Geithner said the additional taxes "can be absorbed" by the oil and gas companies, given the billions of dollars they have earned from high energy prices.
"The impact of these subsidies are very small relative to revenues produced by U.S. oil and gas producers," he said. (Reporting by Tom Doggett; editing by Jim Marshall)
My favorite bit of disinformation:"Geithner said the additional taxes "can be absorbed" by the oil and gas companies, given the billions of dollars they have earned from high energy prices."
Consumers will pay all of the corporate tax increase, not the corporations.
This can be very good news to those holding large positions in certain commodities.
Thu Mar 5, 2009 3:18am IST By Tom Doggett
WASHINGTON, March 4 (Reuters) - U.S. oil and natural gas producing companies should not receive federal subsidies in the form of tax breaks because their businesses contribute to global warming, U.S. Treasury Secretary Timothy Geithner told Congress on Wednesday.
It was one of the sharpest attacks yet on the oil and gas industry by a top Obama administration official, reinforcing the White House stance that new U.S. energy policy will focus on promoting renewable energy sources like wind and solar power and rely less on traditional fossil fuels like oil as America tackles climate change.
"We don't believe it makes sense to significantly subsidize the production and use of sources of energy (like oil and gas) that are dramatically going to add to our climate change (problem). We don't think that's good economic policy and we think changing those incentives is good for the country," Geithner told the Senate Finance Committee at a hearing on the White House's proposed budget for the 2010 spending year.
The Obama administration's budget would levy an excise tax on oil and natural gas produced in the Gulf of Mexico, raising $5.3 billion in revenue from 2011 to 2019.
This new 13 percent tax on all oil and gas production in the Gulf would only affect those companies enjoying a loophole that allows them to avoid paying royalties on the energy supplies they drill. Companies already paying royalties would get a tax credit.
Obama's budget would also place a $4 per acre annual fee on energy leases in the Gulf that are designated as nonproducing. The budget proposal projects the fee would generate $1.2 billion from 2010 to 2019.
Senator John Cornyn of Texas criticized the tax increases, saying they would hurt independent energy companies that provide a large share of U.S. oil and gas supplies.
"My view is that higher taxes on small and independent producers here in America will make us more dependent on imported oil and gas while we transition to cleaner energy alternatives, a goal we all share," said Cornyn. "And it will also hurt job retention and job creation in the energy sector, which provides an awful lot of jobs in this country."
Geithner said the additional taxes "can be absorbed" by the oil and gas companies, given the billions of dollars they have earned from high energy prices.
"The impact of these subsidies are very small relative to revenues produced by U.S. oil and gas producers," he said. (Reporting by Tom Doggett; editing by Jim Marshall)
My favorite bit of disinformation:"Geithner said the additional taxes "can be absorbed" by the oil and gas companies, given the billions of dollars they have earned from high energy prices."
Consumers will pay all of the corporate tax increase, not the corporations.
This can be very good news to those holding large positions in certain commodities.
03-05-2009, 05:49 AM
#2
Gets Weekends Off
Joined APC: Jun 2008
Position: USAF
Posts: 1,398
quite a bit of irony from Mr. Geithner
Oil tax increase + more and more liquidity + "global warming" = ?
this kind of reminds me of someone starting a gas grill with large amounts lighter fluid.
Have you all seen ManBearPig? Half Man, Half Bear, Half Pig... I'm serial!!
Oil tax increase + more and more liquidity + "global warming" = ?
this kind of reminds me of someone starting a gas grill with large amounts lighter fluid.
Have you all seen ManBearPig? Half Man, Half Bear, Half Pig... I'm serial!!
03-05-2009, 06:18 AM
#3
With The Resistance
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Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
Posts: 6,191
manbearpig
the single biggest threat to our planet. something out there which threatens our very existence and may be the end to the human race as we know it. i'm talking of course, about... "manbearpig." it is a creature which roams the earth alone. it is half man, half bear, and half pig! some people say that manbearpig isn't real. well, i'm here to tell you now, manbearpig is very real, and he most certainly exists! i'm cereal... manbearpig doesn't care who you are or what you've done. manbearpig simply wants to get you! i'm super cereal...
manbearpig is Al Gore's way of getting friends because he doesn't have any.
I'M SUPER DUPER CEREAL!! EXCELCIOR!!!
I am certain that manbearpig will meet his end in Galt's gulch.
the single biggest threat to our planet. something out there which threatens our very existence and may be the end to the human race as we know it. i'm talking of course, about... "manbearpig." it is a creature which roams the earth alone. it is half man, half bear, and half pig! some people say that manbearpig isn't real. well, i'm here to tell you now, manbearpig is very real, and he most certainly exists! i'm cereal... manbearpig doesn't care who you are or what you've done. manbearpig simply wants to get you! i'm super cereal...
manbearpig is Al Gore's way of getting friends because he doesn't have any.
I'M SUPER DUPER CEREAL!! EXCELCIOR!!!
I am certain that manbearpig will meet his end in Galt's gulch.
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