Logical Disconnects II

Democrats are committed to budget cuts; we don’t know what they are.   The President’s budget did not actually cut anything; last time I checked he’s a Democrat.  Yet, Dems demand ever more details from Republicans with the apparent goal of beating them to death with whatever proposal they make.  The only specific Democratic answer to the deficit is taxing the “rich” and punishing oil companies over “tax breaks”.  Apparently, less production resulting in reduced supply, higher core costs, more reliance on foreign sources and the predictable pass through of additional costs to consumers resulting in a further reduction of discretionary income will somehow put us on the road to economic recovery.

Tax breaks for carbon based producers that could produce in the short term…..BAD.  Tax breaks for “green” energy sources that are 20 years away…..GOOD! 

Oops!  Environmental lobbies don’t want the transmission lines from the windmills in the Mid West built to deliver wind energy to the grid???  Why are we building windmills, decorative effect; artificial support for GE who paid $0.00 taxes?  Logical disconnect?

What are the “tax breaks”?  Are they the standard depreciation and amortization write offs based on capital spending that applies to all businesses?  According to Professor of economics and finance at the University of Michigan Mark Perry there are no unique tax breaks for the oil and gas industry.  In point of fact the average of federal taxes as a share of income for the S&P industrials is 26.5% of income; for the oil and gas industry 41.4%.  By the way the 41.4% does not include: royalties, excise taxes, state taxes, foreign taxes and other transfer taxes.

The same folks who passed a meaningless provision allowing small business to accelerate depreciation want it taken away from the folks that rely on massive capital spending that lawfully results in significant depreciation write offs.      

When gas prices spike; can a press conference announcing an investigation be far away?  This tactic goes back to President Clinton.  So far, no joy, for investigators; nothing turned up, no illegalities, no inappropriate behaviors. No matter, at least it sounds like someone is doing something despite the President’s statement that little could be done in the short term regarding gas prices.  Attorney General Holder apparently missed the memo.  Oh well, it sounds good on the network evening news.  Damn the facts; ready, shoot, aim.

Creating and saving job is important to everyone; correct?  Hang on Bucko, maybe not.  Under questioning by Rep. Cory Gardner EPA Assistant Administrator Mathy Stanislaus admitted that a major economic analysis of new coal ash regulations did not take into consideration the impact on jobs despite a Presidential Executive Order (#13563) directing that job creation be a part of that analysis and a point of sensitivity.