teapartysamurai
Gold Member
- Mar 27, 2010
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With the midterm elections approaching, it is now clear that cap-and-trade, Democrats main weapon in their war on energy companies, is effectively deadthat is, at least until after the election, when some Democrats who may then be exiting Congress will feel more comfortable supporting it.
However, the demise of cap-and-trade does not mean Democrats have put what some dub plans to target energy companies on hold completely, or placed them on the back burner.
Tax experts say the Obama administration and congressional Democrats want to make two changes to the tax code that, ironically, opponents claim would end up hurting domestic producers and benefiting foreign companies like BPthe company on whose throat the Obama administration was previously claiming to have its boot.
President Obamas 2011 budget proposal reportedly recommends repealing certain tax credits available to companies who pay taxes on income earned abroad. Currently, such foreign tax credits are available to companies with overseas operations, having originally been extended to diminish discrepancies in competitiveness between foreign companies, which are taxed only by jurisdictions in which they earn money on income earned within them, and US companies with operations abroad, which are taxed both by such foreign jurisdictions on income earned within them and by the US government, on all income.
Separately, however, observers say the President and congressional Democrats want to exclude energy companies from Section 199 tax relief, which allows companies to take a deduction in respect of a certain proportion of domestic production each year. Section 199 relief was originally introduced in order to spur job creation in the manufacturing sector.
Ironically, not only could excluding energy companies from being able to rely on Section 199 indirectly result in companies like BP or Venezuelas Citgo benefiting, critics say that like the foreign tax credit proposal, if implemented this proposal could result in further job losses, just as a moratorium is predicted to do. That, combined with fears that a shutdown in domestic drilling could lead to oil companies relocating to, among other countries, Cuba, could turn such proposals virtually toxic for Democrats running both in states affected by the BP oil spill and in which the energy sector is a big employer.
Democrats Pursue New Tactics in War on Energy Companies - Big Government
Policies that would benefit our foreign competitors while hurting AMERICAN energy needs.
Now, why doesn't it surprise me that the guy who bows to Saudi Kings would be okay with that?
This is your Democrat party. Hates American interests, cozies up to those who hate us.