[…]it is quite startling that a president who declared that his number one priority this year would be job creation, has proposed and supported policies that will increase uncertainty in energy markets, reduce incentives to invest in energy jobs at home, and drastically raise energy costs for consumers and businesses. The Obama Administration’s 2011 budget includes a policy change regarding the rules governing dual capacity tax payers — that is, companies that pay taxes around the world — that would eliminate the credit against US income tax liability for income taxes paid in foreign jurisdictions. The result will mean billions of dollars of additional taxes on our domestic energy suppliers’ global operations to the advantage of foreign owned companies. Following suit, Senator Baucus (D-MT) has proposed the repeal of a domestic manufacturing tax credit that rewards companies for keeping jobs in the US. Repeal of the Sec. 199 tax credit, included in a so-called “Small Business Jobs” bill, would not only eliminate domestic jobs but raise energy costs on all Americans. This is a terrible idea as the nation is already teetering on the brink of a double-dip recession.
The energy industry alone supports 9 million jobs in the US and contributes more than $1 trillion to the U.S. economy. The multiplier affects of affordable energy go even further, sustaining millions more jobs and acting as a steady base upon which our economy can grow. According to a study by the Institute for Energy Research, the immediate impact of the repeal of Sec. 199 incentives would be the elimination of 637,000 jobs and, over 10 years, a reduction of US household earnings by a staggering $35 billion.
These policy changes may seem irrelevant to many; but their potentially dangerous consequences will hit home in the form of higher bills, reduced job security, and more uncertainty for businesses. Massive tax revenue grabs by the federal government also fly in the face of the administration’s professed commitment to create jobs and revive our moribund economy.
I’m not sure why, but I find this analysis repulsively racist.
I SAID GOOD-DAY, SIR!
Well, it’s obviously racist because of all them white blue collar boys who work on the rigs.
Ah, the great catch-22 of the Cloward-Piven endgame: Given that too much debt cripples the economy, excess taxation cripples the economy, and nothing’s moving in the economy, you have no remaining moves.
You can’t save because you’ll slow the economy. You can’t spend because you’re broke. You can’t tax because there’s nothing or nobody to tax. You can’t slash the dole because you’ll put everybody with a (government) job in a bread line.
So you print.
Today on NPR they prattled on about Legislation to Reform™ Freddie and Fannie, or as you and I know them, the jackwagons behind — get this — ninety-six percent of the nation’s household mortgage paper.
“Reform”? Really?! We need to legislate reforms to what legislation hath destroyed? Color me cynical but we legislated vast new powers to everything that’s failed for the last half dozen years. It’s the American way.
It’s sheer madness by now. Checkmated by The Collective…the natural aim of liberty and property-based constitutional democratic republics. Like we didn’t have at least the last half century to fend it off.
Multiplier effect of oil industry in the Gulf Coast is about 3x from a regional think tank study a while back. So put that as a $3Trillion cummulative hit. This President has a special hatred for Texas in his bones.
Add to that the competitive advantage lost as productive resources can be bid away from American firms to foreign ones. These are skill sets that are not easily replaced, compounded by the fact that we graduate piss poor levels of engineers these days. I myself, being in the industry, have spent the last 12 months working more outside the country than inside. And the planes loading out of Houston, Shreveport, Tulsa, etc are filled with my peers from engineers to rig operators to consultants heading to Brazil, Arabia, South China and the like.
The Chavez strategy in motion. So go ahead and put the Sierra Club and Environmental Defence Fund in charge of drilling permits and let the tax cuts expire and watch it all go south in a heartbeat. The job offer in Singapore or Bahrain will look mighty tempting to many. The economic numbers will make it irresistable.
Like the guy in “Good Fellas” who brings Pauly in as a partner/muscle on the Tiki Bar. “Its a fucking shame”
Why does Bernie Weinstein hate black people? Why Bernie?
It’s all there, black and white, clear as crystal. You get nothing….you lose!
Destroying jobs appears to be the one thing Barcky and his crew is adept at.