The numbers for new unemployment claims are in and they are NOT good. Again, we are at 9% unemployment. Actually, it is better than expected says Washington but it’s not enough for the economy to grow and create jobs. What can we do if we are still unemployed and the cost of fuel continues to rise?
Some of the reasons the economy isn’t growing and isn’t creating jobs:
- The cost of fuel
- Job maker’s tax rate
- It’s not wise for job makers to invest now
- Given their history with this president, CEO’s don’t trust the President’s commitment to business growth.
Liberal Democrats try to excuse their mistreatment of business now that they are beginning to understand how to support business as true game-changers in this economy. For example, Senator Holland planned to speek to the President yesterday about submitting an application that will allow more domestic drilling for oil in the U.S., which he expects to be signed as bi-partisan. If it passes, hopefully it will increase jobs.
This brings us to the topic of oil subsidies and if it should be eliminated? Here are some facts that may help you when considering this question.
- The three largest oil companies (Exxon Mobile, ConocoPhillips, and Chevron) pay at least 40% tax rateon their profits.
- Now compare that with Apple, a very successful American company pays about 24% tax rate.
- General Electric, whose chairman serves on the President’s counsel on jobs and competitiveness, paid a tax rate of just 7%, and got U.S. subsidies of nearly $4 billion dollars.
- The four companies combined, got $10 billion dollars. Three oil companies shared the difference between $10 billion total and General Electric’s $4 billion in subsidies. You do the math!
Case in point is dragging in CEO’s of oil companies for what Senator Hatch calls a “Dog and Pony Show” Senate Hearing. This political move is typical to make lawmakers look good in public opinion and oil companies look “GREEDY” in this bad economy — ignoring the fact that oil plays a major role in America’s standing in the world. However, they did not expect the CEO’s to stand up for themselves.
Usually, when CEO’s are called in for a Senate Hearing, they are expected to sit there quietly and accept the harsh treatment they get from Senators. Not in this case! I doubt that Senate Democrats, who called this hearing, were quite ready for the “blowback” they received from these CEO’s.
The oil companies fought back with facts. Here are some that were shared by Oil CEO’s:
- “I don’t think the American people want “shared sacrifice“. I think they want “shared prosperity!”
- “A lot of people are unable to work today because we can’t receive drilling permits or there are leases that aren’t being made available; they [the American People] feel that!”
- “Make the United States a more attractive place for investment, do not harm competitiveness overseas because that brings enormous benefits and wealth back to this country, and keep the playing field level within industries so that everyone competes. We love to compete, I mean that is what we thrive on is competition.”
Senator Rockefeller said to the Oil CEO’s, “I don’t think you have any idea of what the size of your profits does to the American People’s willingness to accept what you have to say.”
Senator Schumer said “One of my collegues suggested that this hearing is nothing more than a ‘Dog and Pony Show’. Well, you’d have an easier time convincing the American People that a unicorn just flew into this hearing room than that these big oil companies need this tax payer’s subsidies.”
The most significant thing that was said though, is when one of the CEO’s said: “We have 400 leases in Alaska. We want to start drilling. Let us drill, take off the shackles.”
What Oil CEO’s are likely saying is to quit focusing on what we make and just let us go. What will it take to let us get going on this. We are going to need people, that’s jobs, so let us get started. These oil companies make a lot of money but they also pay a lot of taxes. Think how different our economy would look if those taxes were being paid for profits gained from bringing in more oil.
Think about this: If they say it won’t bring in a cent more if the subsidies were taken away, which the Democrats want to take away and reduce the deficit, it will greatly affect American Oil Production. How is that good for the American People?
Democratic Senator, Mary Landrieu (LA), says the oil companies are being unfairly singled out in a move that won’t produce any benefits for consumers. She asked the Congress to look at this bill and read it. She said, “You will see the unfairness in this bill, the lack of significant deficit reduction, and the fact that it will not, although it’s being tauted as, will not reduce gasoline prices by one penny.”
Isn’t it interesting how some rules apply differently to different companies? Granted, the oil companies have been getting record profits and need to be reigned in. Again it’s the same old liberal philosophy that because a person or company is profitable, and some are not profitable, they should pay more. They just don’t get it. Time again they want to punish success and make them pay more than their fair share to help those who have not been as successful.
Yet, for example, Home Mortgage companies pay the government more than the oil companies so the government favors some more than others. Liberals don’t understand that concept. They really believe what they say and think this is the answer. They really think it’s best to punish success and not take as much from a less successful company.
Capitalism is the reason why the United States is so successful in the world. It is because success is rewarded for effort. I heard it said today but I don’t remember who said it, that you can look at any Liberal form of government and you will see that it fails. Then you look at capitalism and you see that tit grows and grows when liberals leave it alone. I agree with that observation.
Here is a video that follows up on the discussion of subsidies for oil companies and others.
The United States national debt is subject to a debt limit. That limit is $14.3 trillion and right now, our debt is at $14.27 trillion. We will reach the debt ceiling sometime in the next few weeks. Some project that date to be around May 16th or perhaps as late as August.
The projected budget deficit is $1.65 trillion for this year, that’s why we are set to hit the debt ceiling sometime in the next few weeks.
However, the new job numbers this week are not good. It is less than last week but still not good enough. With rising flood waters in Mississippi, food supply is being affected. Corn, wheat, and rice are under water in Mississipi but rice in Alabama were destroyed by a tornado. Farmers will NOT be replanting because there is not enough time left. We may well have a food shortage this year.