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More Democratic leaders Tax Proposals!

August 20, 2008

More Democratic leaders Tax Proposals!
By Louis Neiger, CLU

A little over a month ago the price of crude oil was continuing to increase. Folks in Newberry, Lexington and Richland counties along with other Americans were driving less and driving smart, taking fewer trips. Investors in other markets (including mutual funds) have been concerned for months that record-high prices for energy would force consumers to keep cutting back their discretionary spending in buying goods.

The Democratic leadership in the US Congress noticed less revenue was coming into the federal coffers because of less driving.  Their answer to solving the problem of less revenue due to less driving was to propose an increase in the gasoline federal tax by ten cents. The July 2008 figures show that 18.4 cents federal tax is charged per gallon of gas.  The Exxon Mobil oil company posted  .20 cents per gallon profit for the 2007 fiscal year.  The Democratic congress wants to tax their so call “ windfall” profits.  To begin with the definition of windfall profits is: an unexpected profit arising from causes not controlled by the recipient.  The congress does nothing to affect the price of gasoline other than hinder the private businesses from drilling and building refineries with the onerous laws and regulations that they pass.  The oil companies are trying to stay in business and are doing their best to work with the laws and regulations.  Also when you think of BIG OIL remember that your 401k and money market retirement accounts are heavily invested in energy i.e. BIG OIL.  The seat you are sitting on may be a product of Big OIL which is manufactured by people who have jobs and pay taxes. You are the people that own BIG OIL.  The democratic congress wants to tax the profits YOU are making in your 401k, money markets, etc.

On July 14, 2008 President Bush removed the presidential moratorium for off shore drilling and drilling in the United States.  Oil immediately dropped $9 a barrel.  It had been on July 11, 2008 above $147.00 per barrel.  On August 15, 2008 the price per barrel dropped to $111.34.  This further drop has happened as a result of the Democrats leaving Washington for a 6 week vacation (most of them on gas guzzling Jets) and the Republicans still showing up at the capital with the C-span cameras off and the lights dimmed, as the democrats left them.  The Republicans demanding that the Democrats get back to Washington and give an up or down vote to drilling in the areas we know that there is enough oil to make us energy independent. The market knows that if we drill we the consumer will win.

In Union County South Dakota voters overwhelmingly voted by a solid 58% to 42% to allow an oil refinery to be built in their county. Not only will it bring more jobs and more revenue into a struggling economy it will be the first refinery built in the United State in 32 years.  Oil refineries are necessary to keep up with the energy demands of our nation.  The current oil refineries in the United States are operating almost at peak.

The democrat’s in the US Congress scoffed saying it is just a political hoax and refused to remove the US Congress moratorium for drilling in and around the United States. Nancy Pelosi stated,  “They want us to do more of the same,” she said. “So they’ve come up with this gimmick, this hoax” that says if drilling is allowed in the Arctic National Wildlife Refuge and offshore, “it’s going to bring down the price at the pump.”

Low and behold President Bush and Union County South Dakota were right and Nancy Pelosi and the democrats where wrong, the price of crude started to drop.  The Global speculator’s, (non-commercial) which is around 48 percent of oil buyers, know that if we drill, the demand and price for their oil from their countries will drop and they will lose money.  They attempted to keep the prices climbing by continuing to buy but with oil reserves nearing the peak level globally, prices continued to drop.

The Businesses that purchase oil for business reasons such as plastic makers, automakers, utilities and other oil based products along with oil companies, must pay for the oil the same as the international speculators.

The democratic controlled house leader Pelosi. Recently stated “You want to drill? We want the royalties for the American people, and we want that to pay for renewable energy resources,” the San Francisco Democrat said in an interview for KQED television’s weekly news show, “This Week in Northern California.” mid August.  What a democratic leader calls royalties really mean TAXES to us. If they tax a business, the business passes the cost on to us.  Meaning we the consumers will bear the burden of these so-called “royalties” in higher cost of the product.

The democrats have proposed the government to take over of the American oil companies. We fought a cold war against communist Soviet Union that had this same agenda that controlled all oil companies in their country.  The United States Constitution does not give the central government the right to confiscate private property. The current Russia is trying to do this now by declaring a good portion of the Artic, which has a large oil and natural gas supply, as part of Russia.  Funny thing it is right near the same small area we could drill in Northern Alaska where the Democratic Congress is refusing to let us drill.
If government controls the energy, they control us.  It would no longer be “We the People.” in the United States, It will be ‘We the government’.  Has the US Communist party, that dissolved and became part of the Democratic Party in 2004, become more entrenched in the Democratic Party than we thought?

US House leader Pelosi states she would like a plan that includes oil released from the strategic energy supply, natural gas.  And that solar and wind which is clean and abundant should be mandated as part of the plan.

Well let us take a look at some of her ideals in her plan like the strategic energy supply. The idea of using our strategic energy supply that is set aside for emergencies, especially military, by releasing it into the system for personal use is simply suicidal. This may save us two cents a gallon on a short-term basis but it does put the United States in grave danger if  we are ever attacked or have an unforeseen disaster and our reserves are depleted or exhausted.

In just one area of many out West over 300 acres are devoted for wind turbines.  One oilrig takes up less than an acre of land or ocean.  Besides providing electric and taking up space what other by- product do the wind turbines give? The owners of the turbines can charge whatever they want for the energy and will get tax credits.  What happens if there is NO wind?  Do we go on our depleted oil reserves or just shut down our businesses and turn people’s lights off!

One of the ideas I like is to help individuals, companies or Universities that are looking at alternative energy in wind and solar energy to provide a unit for the individual families use. Create or manufacture something like an air conditioner size.  One of the other ideas is to allow individual homeowners to provide their own energy source from wind or solar in giving them tax credits federal and state on the purchase of these items.  This would cause less dependence on oil and help drive the cost down.

Another great idea is lower or cut the gasoline tax and cut spending on pork.  Allow Americans, individuals and businesses to spend this money to buy durable goods.  If goods are purchased, the demand goes up.  When the demand goes up, it creates jobs. People with jobs pay taxes. The people and government are happy.  This is the miracle of capitalism!
till next time….

Lou Neiger has worked in the Insurance Financial Planning field since 1981 and earned his CLU designation from the American College.   Since the mid 60’s Lou has worked and trained volunteers at the grass root level in many campaigns.  Lou has been published in several papers as a guest columnist.  He and his family live in Newberry.

One Comment leave one →
  1. A Voice In The Wilderness permalink
    October 1, 2009 12:07 PM

    Neiger, I know that you have bought into the gospel of the Republicans but can you tell me why so many of them dink around with so many little boys? And the ones not dinking around with boys are cheating on their wives.


    Get out of them or do you like hanging out with their type?

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