What he didnt promise was that his tax and regulation policies wont cost you a bundle.
By Tina Grazier
Taxing industry, creating regulation that discourages or restricts product development and distribution, and controlling what is developed and what is not is expensive for those engaged in business. That expense will get passed on to consumers as higher prices. Unfortunately the average citizen will not be aware of how higher prices for goods and services actually came about. They will blame oil companies, cereal makers, power companies and their favorite restaurant owner. Clever boy…deceptively so!
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“Energy-state lawmakers vow to fight Obama oil tax hikes,” by Richard Dunham – Houston Chronicle
** Energy-state lawmakers are vowing to do everything they can to block President Obama’s proposed $31.5 billion tax increase on oil and gas producers. *** Obama’s $3.55 trillion budget blueprint released Thursday targeted U.S. energy producers by imposing new taxes and fees, abolishing existing tax breaks and changing accounting rules. *** “This represents an attempt to drive the oil industry overseas through a combination of breaching past agreements the government has made with oil and gas producers and making future production more difficult and expensive,” said Murkowski, the top Republican on the Senate Energy and Commerce Committee. *** “It would be devastating for the cost of energy and for the producing states,” Green added. ***
Producers of traditional fossil fuels could face an economic hit of up to $100 billion if Congress heeds the President’s request to abolish what he called of “oil and gas company preferences” in the tax code and adopts his proposed “cap-and trade” program. *** Obama’s would end energy tax breaks ranging from depreciation of oil and natural gas wells to tax deductions for intangible drilling costs such as repairs and hauling supplies. **
Obama Declares War on Investors, Entrepreneurs, Businesses, And More, by Larry Kudlow
** Study after study over the past several decades has shown how countries that spend more produce less, while nations that tax less produce more. Obama is doing it wrong on both counts. *** And as far as middle-class tax cuts are concerned, Obamas cap-and-trade program will be a huge across-the-board tax increase on blue-collar workers, including unionized workers. Industrial production is plunging, but new carbon taxes will prevent production from ever recovering. While the country wants more fuel and power, cap-and-trade will deliver less. *** The tax hikes will generate lower growth and fewer revenues. Yes, the economy will recover. But Obamas rosy scenario of 4 percent recovery growth in the out years of his budget is not likely to occur. The combination of easy money from the Fed and below-potential economic growth is a prescription for stagflation. Thats one of the messages of the falling stock market. **