Put an elephant in your tank

By: Eric
Published On: 5/1/2006 10:32:27 AM

Last week should go down in the annals of D.C. ass kissing history. Not that any of it is new to Washington, but the ballsy public way in which Republicans in the White House and Senate kissed big oil butt at the expense of the American people deserves some sort of special recognition.

Smooch 1 - Republicans in the Senate proposed giving every taxpayer $100. On the surface this sounds like a not so thinly veiled attempt to buy votes. Hell, even Rush Limbaugh thinks they+óGé¼Gäóre treating us like whores. But only $100?
If their going to buy my vote they'll need a bit more. For some reason the number $36.1 billion keeps popping into my head. How much for your vote?

Oh, never mind, because this is really just another Big Oil subsidy. Just for the record (as I'm sure most of you have already figured this one out) it goes like this: You fill your tank with gas (at outrageous prices)+óGé¼-ª You go to work... Your employer pays you... You pay taxes to Uncle Sam... Republicans return $100 of the money you already paid them... So you can spend it on gas to go to work. In short +óGé¼GÇ£ Republicans hand Big Oil $100 for every taxpayer. Sounds like a subsidy to me.

Smooch 2 - Senate Republicans dodge a vote. On Thursday Oregon Senator Ron Wyden (D) introduces an amendment that would help the average American.

Senator Wyden has gone to the floor to demand that the US Senate vote on ending the practice of giving billions of dollars in royalty relief to big oil. Under last year+óGé¼Gäós energy bill, oil companies got a great deal +óGé¼GÇ£ a reduced royalty payment for oil and gas taken from federal lands that costs as much as $35 billion. Wyden+óGé¼Gäós amendment would stop this ride as long as the price of oil is above $55 per barrel...
But the Republicans won't even vote on it. Now why wouldn't they want to vote on this amendment? Could it have anything to do with the fact that by voting they'd be on record as either selling out the American people or as biting the hand (Big Oil) that feeds (contributions) them? Now wasn't it these same Republicans that insisted on voting when the Supreme Court had an opening?

Smooch 3 - From the man himself, President Bush. There will be no windfall profits tax despite Big Oil posting record profits quarter after quarter.

"My attitude is that the oil companies need to be mindful that the American people expect them to reinvest their cash flows in such a way that it enhances our energy security," Bush said.
I'm trying to think of any sort of analysis or explanation, but his statements on the subject speak for themselves. Plain and simple, they leave no doubt about which side the President is on. And after a banner week in Washington there is no doubt about which side all these Republican "leaders" are on.

Comments



Great graphic! (summercat - 5/1/2006 10:58:02 AM)
Smooch 1 is just  ridiculous--thank goodness people are seeing through it.  The main reason for the bribe is to get ANWR drilling.
Smooch 2--This is the worst of the three. Sen Wyden needs out support, and the Repubs need our scorn for this one.
Smooch 3--The windfall profits thing seems likely to boomerang in a negative way, according to analysts.  Instead, let's cut off the oil companies' access to those tax havens in the Grand Caymans.
The Democratic proposal to roll back the 18 cent federal gas tax only makes sense if it is offset by tax money being taken from the oil companies--in which case they will raise the prices again.


Rolling back the federal (Eric - 5/1/2006 11:38:00 AM)
gas tax would be a bad idea.  To your point, Big Oil would fight against paying our tax share and would find a way to pass on the cost.  Plus, once something is done (or undone in this case), it's always difficult to put back the way it was.  Can you imagine the Republicans screaming about the Dems "raising taxes" when they try to reinstate the tax? 

We know from earlier oil crises that price ceilings don't work.  But I wonder about profit ceilings - the government flat out caps the profits an oil company can make.  Anything above the mark goes to directly to government (i.e. the people).  With no way to keep the excess revneues, Big Oil wouldn't have any reason to push prices higher than they have to in order to hit the profit ceiling.  But I'm not an economist - perhaps someone more schooled in such matters could say if this sort of approach might work in the real world.

But then again, there's no way this sort of concept would get anywhere with the Big Oil friendly Republicans we have running the show.  Oh well, just thinking out loud.



As posted on VAProgresive (Adam Malle - 5/1/2006 8:23:38 PM)
If what the Republicans claim is true, then removing the tax on gas would not resolve any issues at all. In fact it would only serve to increase the profits of oil companies. If it is truly supply and demand that is setting the price people are willing to pay, then the removed 18.5 cents tax would be replaced by 18.5 cent increase in the price of gas thus an 18.5 cent increase in the oil companies profits. If the supply and demand theory of oil pricing is true then the current price which includes a tax is the price at which people are willing to pay (also known as the equilibrium price) for a gallon gas. If The tax is removed gas will be underpriced by 18.5, thus increasing demand. As Demand increases and the supply does not the price will return to the equilibrium price that existed prior to removal of the tax and guess who will reap the benefits of that at whose expense.


Tag Lines (Dan - 5/1/2006 11:34:46 AM)
The Republicans side with the oil companies over the American people.  Who do you side with?  Vote Democratic in 2006.

Oil Companies or American Families - The Republicans choose oil companies.  If you choose American families, vote Democratic in 2006.

When it comes to voters vs. campaign contributors, the Republicans choose the latter every time.  Don't vote for candidates who would rather represent campaign contributor, vote for someone who respresents your vote.

Republicans feel their obligation is to large oil companies and others who finance their campaigns.  To get Republican support for the issues you care about, you have to pay for it.  To get Democrat support, all we need is your vote.

The Republican plan for gas prices:  NELB - No oil executive left behind.  Just because oil executives have money, doesn't mean they should determine the will of the American people.  Don't vote for candidates who support multi-national oil companies, vote for candidates who support the American people.  Vote Democrat in 2006.