What Is Obama's Plan On Oil Prices/Energy Prices? (NAFTA, minimum wage, salaries)
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Even in as rigid a market for transportation fuels as ours, eventually there is a price where consumption takes a very rapid drop. When the demand falls profits drop even with raising prices. Perhaps this is just a nationwide marketing experiment to develop a realistic Price/Demand curve. The oil companies have nothing to lose unless they go too far past the break point and the demand does not increase even if they drop prices. Note prices seem to climb and then drop just about every decade. I wonder why?
BTW – Neither President Obama or the international petroleum marketers are “dumber than dirt”. Just saying so does not make it so except to the “true believers” that will accept anything that fits their delusions.
So, gas prices are way up. Oil company profits are up. Oil companies take advantage of deductions that our government has determined will change their behavior.
So what does Obama propose??? Increase oil company taxes by removing the deductions. Now guess what happens when you increase taxes on oil companies????????
You guessed it. They INCREASE gas prices to cover the increased taxes.
Our fearless leader thinks we are dumb... and maybe we are, but not so dumb to believe his political rhetoric.
Raising taxes on oil companies will increase, not decrease, prices at the pump.
You're fundamentally wrong, which isn't surprising since you're blinded by hatred of Obama. It's not just tax deductions but also direct cash subsidies paid by the government to oil companies to do exactly what they would have done anyway at this market price (drill all they can drill) but also reductions in the royalty payment rate (how much we the people get for letting a company use a limited public resource on public land) and rules which require to the Federal government to not track how much oil is being pumped out of public land. We're supposed to just trust what ever the oil company says without verifying even though it is in the oil company's interests to under count (and so avoid as much of the royalty payments as possible).
The hard and unavoidable truth is that the oil companies already have massive market incentive to drill everything inch they can because prices are so high and will keep going higher as global demand increases in 3rd world especially Asia. Subsidies don't actually end up encouraging much drilling (in fact probably not any drilling) because the profit incentive is already astronomically high due to market forces so that subsidies are just a waste of money. If X is a really big number or even just a large number then the difference between X and X + 1 isn't much percentage wise. It's just a waste of taxpayer money right now, conservatives should be appalled the the government is screwing with the free market by arbitrarily picking winners and losers (based on subsidies) and tax payers should be more concerned with maximizing profit from the sale of public resources to the highest amount the market will sustain over the long term.
That means instead of lowering royalty payments for oil companies tax payers should be raising them because the demand is so great they're leaving money on the table wrt the sale of publicly owned resources. The government should not be giving free money to politically connected companies especially since the market already does a much better job based on supply and demand. We should end market distorting subsidies and let the market sort out the winners and losers without government pushing the scales in favor of firms which spend big on lobbyists.
You keep the change, I would rather keep my dollars.
Hey, I didn't vote for him. But you might wanna look more closely at those dollar bills while your at it... they are just pieces of paper...tools for manipulation... with no intrinsic worth.
My fellow Americans, we've been had...hoodwinked...bamboozled! The Man isn't dumb, we are. We unwittingly playing his game.
So, gas prices are way up. Oil company profits are up. Oil companies take advantage of deductions that our government has determined will change their behavior.
So what does Obama propose??? Increase oil company taxes by removing the deductions. Now guess what happens when you increase taxes on oil companies????????
You guessed it. They INCREASE gas prices to cover the increased taxes.
Our fearless leader thinks we are dumb... and maybe we are, but not so dumb to believe his political rhetoric.
Raising taxes on oil companies will increase, not decrease, prices at the pump.
Only a fool would defend the obscene profits Oil companies make! They don't need a reason to increase "gas prices" since we as Consumers are held hostage and beholden to them!
The only thing that will make Oil companies drop their prices is a drop in consumption and that is coming!
who do you think is going to pay that tax? Oil companies will just raise their prices to cover the loss of revenue from the tax. Whose going to ultimately;y pay for this tax? The consumer that is who
No, the price is set by supply and demand. Oil companies can't raise price above market rates. Ending oil companies subsidies will increase their costs slightly, which could possibly lower the supply (some oil production would be less profitable), then raising prices.
But if oil prices are higher, it's already profitable anyway, and so ending subsidies won't raise prices.
You're fundamentally wrong, which isn't surprising since you're blinded by hatred of Obama. It's not just tax deductions but also direct cash subsidies paid by the government to oil companies to do exactly what they would have done anyway at this market price (drill all they can drill) but also reductions in the royalty payment rate (how much we the people get for letting a company use a limited public resource on public land) and rules which require to the Federal government to not track how much oil is being pumped out of public land. We're supposed to just trust what ever the oil company says without verifying even though it is in the oil company's interests to under count (and so avoid as much of the royalty payments as possible).
The hard and unavoidable truth is that the oil companies already have massive market incentive to drill everything inch they can because prices are so high and will keep going higher as global demand increases in 3rd world especially Asia. Subsidies don't actually end up encouraging much drilling (in fact probably not any drilling) because the profit incentive is already astronomically high due to market forces so that subsidies are just a waste of money. If X is a really big number or even just a large number then the difference between X and X + 1 isn't much percentage wise. It's just a waste of taxpayer money right now, conservatives should be appalled the the government is screwing with the free market by arbitrarily picking winners and losers (based on subsidies) and tax payers should be more concerned with maximizing profit from the sale of public resources to the highest amount the market will sustain over the long term.
That means instead of lowering royalty payments for oil companies tax payers should be raising them because the demand is so great they're leaving money on the table wrt the sale of publicly owned resources. The government should not be giving free money to politically connected companies especially since the market already does a much better job based on supply and demand. We should end market distorting subsidies and let the market sort out the winners and losers without government pushing the scales in favor of firms which spend big on lobbyists.
You are fundamentally wrong due to your blind following of Obama.
I never said I agreed with tax incentives for oil companies and I totally support ending all "market distorting subsidies". Our bloated government has implemented tax and other incentives by the thousands over the years and totally destroyed the concept of a free market.
What I said is that raising their costs (regardless of the method used) will not lower gas prices. Obama is telling the voters that he is trying to lower gas prices but his actions will have the opposite effect.
And by the way, some of these subsidies are for hiring US workers (which I do not agree with, but the voters love them).
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What rights of a person do they have? Can they marry? vote? drive a car?
If you're really interested read the SCOTUS decision.
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