Thursday, March 5, 2015
1012 C Street  •  Floresville, TX 78114  •  Phone: 830-216-4519  •  Fax: 830-393-3219  • 

WCN Site Search


Lost & Found


VideoLost Catahoula Leopard Dog - Tri Color, Orange Collar, Male about 1yo, "lg" tattoo in left ear. Last seen FM 539 near feedlot. Call 361-293-8633 if found.
Reward! Black Manx cat (no tail), shy, medium build, "Bear", missing since Oct. 22, we miss him so much! 210-635-7560.

VideoLost: Help us find our cat Sour Patch, she has the typical Siamese markings, shaved belly from just being fixed, had a pink/diamond collar. Call/text, 830-534-2606.
More Lost & Found ads ›

Help Wanted

The Floresville Independent School District is accepting applications for Grounds Maintenance Worker. Terms of employment: 260 days, 5 days per week, 8-hour workday per year; hours may be modified based on changes in mission requirements. Primary purpose: To help maintain the physical school plant in a condition of operating excellence so that full educational use of it may be made at all times. Education/Certification: License requirements, Texas Motor Vehicle Operators License, Structural Pest Control Board Technician Pesticide License. Special Knowledge/Skills: 1. Good knowledge of the operation, trouble shooting, repair and maintenance of ground maintenance equipment. 2. Must demonstrate good mathematical calculation skills and reading comprehension skills. 3. Good knowledge of safety precautions to avoid injury to himself and other. Experience: Prior lawn care experience or grounds maintenance experience in an educational institution or environment. Interested applicants will need to apply online at www.FISD.us.
Pump shop hiring full-time position in La Vernia, clean driving record, willing to work occasional weekends, pay DOE. Call 903-987-2533.
More Help Wanted ads ›

Featured Videos





Video Vault ›

Commentaries


President Obama Attacks the Oil Companies




E-Mail this Story to a Friend
Print this Story

Disclaimer:
The author of this entry is responsible for this content, which is not edited by the Wilson County News or wilsoncountynews.com.
September 27, 2011 | 1,867 views | 2 comments

By Merrill Matthews

A widely recognized economic principle is that when you subsidize something, you get more of it, and when you tax it, you get less.

Unfortunately President Obama's guiding economic principle is to impose more taxes on profitable companies and subsidize those that can't make a dime. It's no wonder the economy is struggling.

Nothing better exemplifies the president's economic principle than his continued effort to end "special tax breaks" for the oil and gas companies.

The industry is doing well right now. Royal Dutch Shell Oil's profits were up 77 percent in 2010, and Exxon Mobile's were up 41 percent in the second quarter.

But they are far from being the most profitable companies in the country. According to Fortune magazine's recent list of the most profitable companies in 2010, Exxon's profit as a percent of revenues was 8.6 percent, Chevron 9.7 percent, and Conoco 6.1 percent.

By sharp contrast, Corning came in first at 54 percent. Coca-Cola was 34 percent, Visa was 37 percent and Google was 29 percent. It's no small feat to make such money in tough times.

Ironically, President Obama and his administration's policies have played a significant role in the oil industry's profits. When the value of the dollar declines, investors start buying commodities. Gold tends to be the first safe haven, but oil isn't far down the list.

Of course, other factors-such as demand, supply and refining capacity-affect the price of oil. But the Obama administration and the Federal Reserve Bank have funneled trillions of dollars into the economy, lowering the value of the dollar, and consequently driving up the price of commodities like oil. That leads to increased oil company profits.

While President Obama supports increased drilling in Saudi Arabia and off the coast of Brazil, his opposition to new domestic drilling means the U.S. is dependent on other countries for about half of the nation's oil needs. That reduced domestic oil supply drives up the price and forces the United States to buy oil from other countries, only adding to the U.S. trade deficit.

Now that President Obama's policies and federal spending have created a budget crunch, he wants the oil and gas industry to embrace the "shared sacrifice" platitude that has become the watchword of his administration.

The fact is that the alleged "special" tax breaks are widely available to other industries. But, the president also wants to repeal the foreign tax credit for oil companies. When a U.S. company makes a profit in a foreign country, it pays foreign taxes on those profits. It's perfectly legal for companies to claim a tax credit equal to their foreign taxes. This keeps them from being double taxed.

This tax break is available to all qualifying companies. It's the president's proposals that would create the inequities.

It is a mystery why the president is so intent on demonizing an industry with such deep American roots and huge American payrolls. The oil industry directly employs over 2 million Americans, both blue-collar workers and well-trained scientists and engineers. It's also growing-17,200 new oil field jobs were added in just the second quarter of the year. There are also millions of manufacturing, construction, mining and other indirect jobs the industry supports. To the extent the industry is allowed to drill here, it keeps jobs here.

The industry also invests here. According to the Oil and Gas Journal, some $284 billion was invested right in America, in 2011. If the industry were allowed to explore in more domestic areas currently off limits, there are estimates that another 1 million jobs would be created.

The oil and gas industry's stability and profitability make it a haven for public and private pension funds. Nearly 100 million Americans are industry stakeholders through their pensions, IRAs, 401k plans and mutual funds. Indeed, oil and gas stocks and mutual funds have been one of the stock market gushers. How would the market react to the news that President Obama was hitting the oil and gas industry with a slew of new taxes?

Economic policy may not be one of the president's strengths, but he needs to understand that rewarding failure and punishing success is bad policy. The oil and gas industry is an American success story-let's hope President Obama leaves it that way.

Merrill Matthews is a resident scholar with the Institute for Policy Innovation in Dallas, Texas.
 
‹ Previous Blog Entry
 

Your Opinions and Comments

 
Senior Citizen  
Wilson County  
October 10, 2011 3:11pm
 
Making the energy producers the bad guy only ensures that we all pay more for that energy. B A D P O L I C Y ...

 
Elaine K.  
Floresville  
September 27, 2011 2:37pm
 
New post.

Share your comment or opinion on this story!


You must be logged in to post a comment.




Not a subscriber?
Subscriber, but no password?
Forgot password?

Commentaries Archives


Commentaries
Commentaries page govtrack.us
Commentaries who represents me?
Triple R DC ExpertsHeavenly Touch homeVoncille Bielefeld homeAllstate & McBride RealtyWilson's Auto ChooserEast Central Driving SchoolChester WilsonSacred Heart SchoolDrama Kids

  Copyright © 2007-2015 Wilson County News. All rights reserved. Web development by Drewa Designs.