Redstate...
Barack Obama Comes
Out For Even HIGHER Gas Prices
Posted by Erick Erickson
Wednesday, April 27th
I realize Barack Obama graduated magna cum laude from Harvard and was
Editor of Harvard Law Review, but I’m starting to think he’s not that
bright — or at least lacks sense (never mind that he won’t release his
college transcripts).
He’s definitely an amateur and it shows when, late yesterday, Obama
came out in favor of even higher gas prices.
As a friend noted on Facebook, Obama’s popularity is falling so fast
that Kenyans are now claiming Obama was born in the United States. This
won’t help that.
Now, he does not say he is in favor of higher gas prices (though his
Secretary of Energy does), but Obama wants Congress to “take ‘immediate
action’ to end tax subsidies for oil and gas companies”
The two subsidies Barack Obama specifically wants Congress to kill are
the “percentage depletion” and “intangible drilling costs (IDCs)” tax
incentives.
Enter Democrat Congressman Dan Boren who explains why doing so would
drive up the cost of oil production, make us more dependent on foreign
oil, and — oh by the way — points out that getting rid of these would
not affect Exxon, Shell, BP, Phillips-Conoco, etc. in the least little
bit.
Boren notes...
Specifically, the Administration is seeking to repeal the “percentage
depletion” and “intangible drilling costs (IDCs)” tax incentives. The
removal of these provisions would negatively affect domestic
independents who utilize them to attract the capital necessary to drill
new oil and gas wells inside the United States. It is estimated that
eliminating percentage depletion and IDCs for domestic independents
would reduce U.S. drilling by 30-40 percent, thereby increasing the
nation’s dependence energy from foreign sources. Furthermore, the major
oil companies are barred by law from receiving percentage depletion
altogether, as it only is given to domestic independent producers. The
IDC preference is only available for domestic drilling activity, and as
the major oil companies drill primarily outside the U.S., the domestic
independent sector of the industry will yet again bear the brunt of
losing this critical provision.
So, getting rid of these would only affect small businesses.
Read it with links at Redstate
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