Faux news slams Obama admin over gas prices...

[BanginJimmy]

Oh and FYI, Oreilley has been reporting ALL THIS WEEK AND LAST WEEK about how its not really Obamas problem, its the oil companies selling their oil overseas. Even if we drill more, all the oil companies will do is send the product overseas where the chinese are paying for it.

The way we bring down prices is force them to sell it here, which means getting the economy going.

I said this on another forum and I dont even know if it is possible.

How about setting up a domestic oil market. Only oil that is produced within the American territories and sold within the American territories are sold on this market. What do you think of a tax credit to cover the price differences between world market oil and a newly created domestic oil market? Domestic oil selling at $55 a barrel, world market price at $100, producers get a credit of $45 a barrel. That would drastically reduce gasoline prices and the prices of everything else we buy.

[bu villain]

I said this on another forum and I dont even know if it is possible.

How about setting up a domestic oil market. Only oil that is produced within the American territories and sold within the American territories are sold on this market. What do you think of a tax credit to cover the price differences between world market oil and a newly created domestic oil market? Domestic oil selling at $55 a barrel, world market price at $100, producers get a credit of $45 a barrel. That would drastically reduce gasoline prices and the prices of everything else we buy.

But who is going to pay for that MASSIVE tax credit? Do you really want to start what is basically another giant entitlement program?

Also, don't you think that might set off some trade wars?

[BanginJimmy]

But who is going to pay for that MASSIVE tax credit?

This is where I am out of my depth. Yes, there would be a small reduction in tax income to the govt, but I really have no clue how much. An increase in domestic oil production staying here and drasticly lowering prices would absolutely spark job growth and create a larger tax pool. The fact that the US is basicly removed from the international market would also GREATLY reduce demand and bring international prices down considerably. When international prices go down, it would lower the tax credit amount. Lowering ONLY domestic transportation costs would also make things like air travel and basic necessities less expensive, giving consumers more disposable income and sparking more job growth.

Do you really want to start what is basically another giant entitlement program?

The energy industry is already heavily subsidized. This may just be a way to move the way the money is spent to other areas. Ones that might actually work for a change.

Also, don't you think that might set off some trade wars?

With who? OPEC? They need us FAR more than we need them. If we included Canada and Mexico into this equation and made it NAFTA for oil, North American oil and refined products production would far exceed the middle east inside 3 years. This would require the feds to actually let companies drill and actually open new refineries though.

[bu villain]

This is where I am out of my depth. Yes, there would be a small reduction in tax income to the govt, but I really have no clue how much. An increase in domestic oil production staying here and drasticly lowering prices would absolutely spark job growth and create a larger tax pool. The fact that the US is basicly removed from the international market would also GREATLY reduce demand and bring international prices down considerably. When international prices go down, it would lower the tax credit amount. Lowering ONLY domestic transportation costs would also make things like air travel and basic necessities less expensive, giving consumers more disposable income and sparking more job growth.

Actually I wasn't talking about income tax. I thought you were saying the US government would give the oil companies a $45/barrel subsidy. If you want to use gas subsidies to spur economic growth, shouldn't we start with removing the gas taxes at the pump? Also, I don't think it would lower the price internationally because OPEC change their production to keep gas at certain prices.

The energy industry is already heavily subsidized. This may just be a way to move the way the money is spent to other areas. Ones that might actually work for a change.

I'm confused because I thought your whole premise was that we should subsidize gas companies more. This statement sounds as if they are already too subsidized. Which way are you advocating?

With who? OPEC? They need us FAR more than we need them. If we included Canada and Mexico into this equation and made it NAFTA for oil, North American oil and refined products production would far exceed the middle east inside 3 years. This would require the feds to actually let companies drill and actually open new refineries though.

No, with all the countries we export oil to. Imagine if China said they were gonna stop selling steel or some other commodity of which they are a major world supplier. We sign all sorts of trade deals all over the world to make sure other countries can't do things like this to us.