Conservative Politics Today

As I sit watching the Big Oil Executives testify during these congressional hearings, I find myself screaming at the television. I hear Senator Dick Durbin, D-Ill., ask “Where is the corporate conscience?” This is followed by Sen. Patirck Leahy, D-Vt., stating, with feigned concern, “People we represent are hurting, the companies you represent are profiting.” And finally, Sen. Durbin tosses out this little gem, “Is there anybody here that has any concerns about what you’re doing to this country with the prices that you’re charging and the profits that you’re taking?”

Were I one of the Big Oil Executives sitting up there, I would do as Ronald Reagan and take the issue to the people - give a mass education. I would also pull a Howard Hughes by openly challenging them and exposing their absolute hypocrisy, wasteful spending, and complete lack of knowledge of how the oil industry works.

I would begin by explaining that Oil Companies do not establish the price of crude. This is determined by global supply and demand in international markets. A simplied version of pricing goes something like this: OPEC’s production policies have a huge impact on oil prices worldwide. Right now, OPEC is trying to maintain these high prices, by refusing to increase it’s output, or production. If non-OPEC countries cooperate with OPEC and OPEC country’s stick together prices will remain high as demand increases, while output does not.

Like most everything, crude quality varies. In other words, the value of a product made with crude, is determined by the caliber of crude, gas for example. Enter West Texas Intermediate (WTI) – State of Texas – right here in U.S. Known as Texas Light Sweet, this is a high price, high quality crude that remains the benchmark for other crude oils in Europe and Africa. All crude price changes are matched by a change in the price of WTI.

Next I would explain to the public – and these politicians- that corporations do not pay taxes. Certainly they pay a tax debt, but that is passed onto the consumer. This occurs in every corporate structure, no matter the size. A perfect example is the increased cost of goods, as a direct result of the increase in the cost of fuel. However, Big Oil companies pay an already exorbitant amount of taxes to the government.

In direct response to the questions above, and these Senators desire to tax “windfall profits” at 50%, I would have pulled out my companies first quarter earning statement for 2008 and shown to these officials, and the people of this country, who the real profiteers are.

For example, Exxon’s first quarter earning statement for 2008 shows a profit of $10.9 billion. That certainly sounds like a lot of money. But, that is not even half of the $29.3 billion they paid in taxes, with $9.3 billion going to the feds, $8.4 billion in sales tax and 11.6 billion for all other taxes.

Put in smaller numbers we can wrap our mind around, this comes to a per gallon profit breakdown of:

0.8 cents for Oil Companies that explore, drill, transport and supply the oil.

18.4 cents to the federal government that does nothing.

60.8 cents to the State of New York (taxes vary by state), who also does nothing.

I would then ask Senator Leahy and Durbin to tell their constituents what they have done to put that money back in the hands of the populace. I would show how Presidential hopeful, Barrack Obama already has plans to spend this “windfall” tax and it does nothing to help ease the pain at the pump or create new forms of energy.

Of course, I would do so after congratulating Senator Chuck Schumer on his dubious “Porker of the Month” award, presented by the nations largest, nonpartisan, nonprofit organization Citizens Against Government Waste (CAGW).

AGW Names Sen. Charles Schumer Porker of the Month
“Washington, D.C. - Citizens Against Government Waste (CAGW) today named Sen. Charles Schumer (D-N.Y.) its May Porker of the Month for attempting to use the tax code to earmark a $2 billion subsidy for a commuter rail between Manhattan and the JFK airport. Sen. Schumer wants to take advantage of the New York Liberty Zone (NYLZ) tax credits, which were intended to stimulate the redevelopment of downtown Manhattan after 9/11, for a rail project that has been under consideration since well before 2001…

… “What makes this project especially objectionable is the creative financing conjured up to pay for it. This earmark hangs like a Christmas ornament from a must-pass bill to extend certain annual tax credits. And how’s this for a misnomer? The subsidy is called the ‘New York Liberty Zone Tax Credit.’ Here’s how it would work: New York would receive up to $2 billion over 10 years (about $1.3 billion of which is Sept. 11 money, for a net new subsidy of $682 million).
“Of course, New York City doesn’t pay federal taxes, so this bill allows the Big Apple to retain the employer share of the payroll taxes that the city collects on behalf of its public employees … The result: a new $2 billion hole in the budget.”
For manipulating the tax code to push for a $2 billion earmark unrelated to the original purpose of the NYLZ tax credits, CAGW names Sen. Charles Schumer its May 2008 Porker of the Month….”

It is time for these Oil Executives to get tough. Stop playing this game by their rules. Use this opportunity to openly challenge the misuse and abuse of these “windfall profits” the government makes.

Declare open war on these people! Educate the masses. Let them know what you, Big Oil, are doing for us – including your massive charitable contributions – and continue to try and do for us, and how it is the government hinders you in every way possible. Show the cause and effect.

You Big Oil Executives have a golden opportunity. Right now- today – you must seize it and stop the madness of these uneducated, out of control, career politicians.

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