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  • Obama’s Phantom Tax ‘Loopholes’

    President Obama is scheduled to do interviews with TV anchors in eight cities this week in a desperate effort to blame Republicans for looming sequester cuts. “The president will have an opportunity to focus on the harmful local impacts that will be felt if congressional Republicans refuse to compromise,” a White House official told Reuters.

    Obama is taking a page from the dusty playbook of mayors all over America who, when faced with the reality of their spending problems, instead threaten mass layoffs of teachers, police and firefighters to scare the daylights out of voters. That makes them much more willing to cough up more dough.

    To show you how deep the White House is in denial about America’s spending and debt problem, take a look at the president’s latest solution, euphemistically branded “Fix it First.” He wants to spend another $50 billion on “infrastructure.” That’s right, spend $50 billion more. The White House, of course, would like nothing better than to funnel more billions to crony contractors and associated construction unions which would launder their dues into future contributions for Democrat causes.

    Obama Fix It FirstWhen he takes to the airwaves this week, Obama will try to convince Americans that we can solve our spending habit and significantly reduce our $16 trillion in debt by “closing loopholes” in the tax code. Of course, he’s hauling out the misleading and destructive claim that “Big Oil” is benefiting from some of these loopholes. Congressional Democrats have piled on, demanding an end to “several costly tax incentives that subsidize the ‘Big 5’ major integrated oil companies (e.g., Exxon-Mobil, Chevron, Shell, BP, and Conoco-Phillips).”

    Just as often as they make these false assertions we need to point out that there are no federal subsidies for “Big Oil.” The White House and Congressional Democrats are hoping to selectively deny American energy producers tax deductions and incentives, some of which they would leave in place for other industries. Depending on the specific measure, Democrats would raise taxes on energy producers by billions of dollars.

    What would result? Even higher gas prices, lower rates of job creation and less investment available to develop domestic energy resources.

    But the White House keeps talking about solving our fiscal problems by spending more and ending phantom subsidies with punitive new taxes on American oil and gas producers.

    For the good of the country, Obama has to stop campaigning and deal seriously with this issue.

    This post was tagged under: barack obama, Debt, Deficits, Energy, Featured Post, Federal Budget, National Politics, Spending

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