Free market Norseman Grover Norquist sent a letter to “Senators” today, urging them to vote against the cleverly titled Close Big Oil Tax Loopholes Act of 2011. And for anyone that has signed the Taxpayer Protection Pledge, let it be known that you’ll be in direct violation of said pledge if you also sign the CBOTLA2011. This means you can expect ATR hellfire – in the form of sternly-worded letters – to rain upon you. If you think they’re bullshiting, just ask Tom Coburn what happens with you mess with the (Viking) horns.
Voting for the Close Big Oil Tax Loopholes Act of 2011 is a violation of the Taxpayer Protection Pledge. Senate Democrats advocating for this legislation predicate their arguments on three false suppositions:
1. Taxing oil companies will bring down the price of gas
2. Washington needs more money
3. Oil and natural gas producers are the recipients of government subsidies
None of these presumptions are true.
Coinciding with the recent rise in gas prices were Democrat calls to raise taxes on America’s oil and natural gas producers—some of this country’s finest job creators. This line of reasoning is illogical. Raising the cost of producing crude oil will necessarily raise the price of gasoline.
As many Americans now understand, this country doesn’t have a revenue problem, we have a spending problem. Democrats are defaming oil and natural gas companies—with stunts like last week’s Senate Finance hearing—because they see these successful businesses as a way to fund a bloated federal government. President Obama’s Party has demonstrated no interest in seriously reducing spending.
So if you want to be associated with that, Senators (and I suspect The Gipper would be very disappointed), go ahead and sign CBOTLA2011. But you’re on notice.
ConocoPhillips CFO Jeff Sheets is warning the U.S. Senate that repealing tax credits for oil companies will make it more difficult for his company and their U.S. counterparts to compete internationally and “higher taxes will mean that oil companies will have less money to reinvest, which could lead to a decline in the supply of hydrocarbons.”
Conoco’s CEO Jim Mulva, who will be testifying before the Senate Finance Committee tomorrow, agreed saying, that these plans are “discriminatory” and “If there is less investment, there is going to be less production and less production means higher prices for consumers.” So, Max Bauchus et al., go right ahead with your plan if you can sleep at night knowing that you’re nothing but a bunch of prejudiced jerks that want to hurt the American people. [WSJ, Reuters]
Next thing you know you’ll hear about CPAs in Iowa (with the exception of one with whom we’re acquainted) opposing the repeal of ethanol credits.
The Texas Society of CPAs’ Federal Tax Policy Committee addressed the issue in its “Analysis of Legislative Proposals to Repeal Certain Tax Treatments of Domestic Oil and Gas Exploration and Development”.The committee agrees that reducing the deficit is of utmost importance, but said that any effort to cut tax incentives for oil companies and raising taxes on oil and gas exploration and development should be weighed against its potential to exacerbate the current underemployment issue, and the need for a secure source of energy.
As noted in the analysis, the committee said it believes repealing tax benefits and allowances for the industry could adversely impact the state’s oil and gas industry, and the economies of Texas and the U.S.
The demand for fossil fuels remains high; can you believe it?
Halliburton Co. (HAL) remains bullish on the recovery of its oil services business, which was hit hard last year by the economic downturn, Chief Financial Officer Mark McCollum said Thursday.
“We continue to be very bullish about the recovery itself,” McCollum said in a webcast presentation to investors. The company is seeing increases in the pricing of contracts in North America, where activity in the third quarter “remains high.” The North American market “continues to do very well,” he said.
You people with poor attitudes really aren’t helping matters.