
...well you ain't seen nuthin' yet!
Democratic Congressmen(and women) passed H.R. 5321 scrapping the tax deduction given to the major integrated oil companies that helps them explore, extract, refine and market the energy that drives our economy. Congress ensured that its discrimination against the big oils would benefit Citgo, which happens to be owned by Venezuela's Hugo Chavez. Which last year siezed all US corporate oil refineries and oil interests in Venezuela.
Although in the bill, Citgo keeps its 6 percent deduction for U.S. domestic manufacturing, the same one the American oil companies loses, because Citgo "buys from Chavez".
By taxing big oil companies, Congress gives them less cash to develop new sources of supply that would bring these prices down. America's large integrated oil companies are profitable, but they also are the biggest spenders on exploration and R&D technologies. They have the greatest capacity to reach into the earth's remotest regions to produce energy; now, they'll do less of that.
The bill will force these companies to pass
18 billion in costs on to buyers; Like all private enterprises, energy companies don't eat new taxes - their consumers do, meaning higher prices at the pump. Meanwhile, U.S. oil companies will have a long-term incentive to locate operations abroad, if only to match the advantage enjoyed by companies such as Citgo.
Source: "Tax Cut For Hugo?" Investor's Business Daily, February 29, 2008.
"At least tell me you love me while your doing that."
Ben Dover, philosopherCan I have another
"Cup O' Poison" ~ Grady