The Autumn of Wreckage is off to a fast start, eh?
Via the NYPost:
Just last week, President Obama explicitly targeted the industry for two massive tax hikes. First, he’d ban oil and gas companies from using the “Section 199″ tax credit, a measure for domestic manufacturers enacted in 2004 to boost US employment. (The Senate is set to vote this week on its version of the ban.) Second, he wants to end “dual capacity” protection for US energy firms.More Here..
Without this shield against double taxation on foreign revenues, American companies would be competing on an uneven global playing field. Again, Obama aims directly and specifically at the US oil and gas industry.
Yet, by the federal government’s own economic model, these tax hikes would lead to huge, immediate job losses. I ran the numbers through the Commerce Department’s RIMS II model; it shows, under the proposed changes to Section 199 and dual capacity, Americans would almost immediately lose more than 150,000 stable, private-sector jobs.
Because our energy firms operate as part of an integrated economy, as much as 38 percent of the job losses would come in professional fields, such as education, administration, health care, real estate and the arts. Another 21 percent would hit producers of necessities such as our food and textiles.
In other words, lawmakers would be slamming the very teachers, firemen and factory workers that they claim to want to help. And the fallout wouldn’t end there. Higher energy taxes would cost the US $341 billion in lost economic activity and $68 billion in wages over the next nine years.
Hmmmmm... to make matters worse, I see more Cubans heading this way...
ReplyDeleteCuba to cut 500,000 gov't workers, reform salaries
HAVANA (AP) -- Cuba announced Monday it will cast off at least half a million state workers by early next year and reduce restrictions on private enterprise to help them find new jobs -- the most dramatic step yet in President Raul Castro's push to radically remake employment on the communist-run island.
Whitehouse Economic Advisor: Don't Expect Jobs
ReplyDeletehttp://thecomingdepression.blogspot.com/2010/09/whitehouse-economic-advisor-dont-expect.html
Obama should learn from this! BIG GOVERNMENT???
ReplyDeleteNot sure I believe this hype. The oil and gas companies certainly do not pay their fair share of taxes. The oil companies make billions in profits, so to hear them crying boo-hoo is a joke.
ReplyDeleteWe're losing jobs because corporations and banks fire workers to make their accounting bottom lines look good. Banks are actually getting paid interest from the government--on money lent to them by the government in the first place. So they make a profit by NOT lending it to people.
It is true that transportation costs are passed onto the consumer. However, do you understand that for the last year, all forms of transportation have been down by at least 25%? So companies have spent less money (and therefore have had a much lower expense)--but have you seen prices go down? The only item I've seen for less is clothes, and they were overpriced to start with.
still some smaller oil and gassers in US, simply a way to get them to sellout sell assets to the big 5?
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