South Dakota To Build First New Oil Refinery in 32 years

South Dakota residents should be proud of themselves. In a time when Washington, D.C. offers no solutions and double-talking politicians complain about gas prices while blocking any effort to drill domestically, South Dakota comes through with a solution. Build a big new refinery and force more domestic drilling!

Drill

Now, nothing has happened yet and the enviro-wackos have yet to swoop in and conveniently find some endangered field mouse in Union County, but 3,292 acres have been rezoned to build the nation’s first new oil refinery since 1976. That’s right. The environmental movement has been successful in blocking any new domestic refineries for that long.

Can anyone say high gas prices?

The same people that complain that we need to wean this country off foreign oil are the same ones that block any effort to drill. Just where are we supposed to get our oil from? NOWHERE! That is the million dollar answer. We aren’t supposed to get oil….we’re supposed to slink back to the days of cart and buggy and the wild west. People who oppose domestic drilling (i.e Democrats) aren’t interested in real solutions and block any effort to fix our problems.

What would drilling for domestic oil do? It would have an immediate impact in that it would send a message to OPEC nations that we are tired of the prices and we can get our own oil. Right now, we’re completely at the mercy of them. If we start drilling, those same nations aren’t going to want to lose our business. Prices will fall, while great companies like General Motors and Ford will continue to develop technologies that will utilize gas better than it is now. However, these things take time and there is clear public support for new types of energy.

So, congratulations to South Dakota for coming up with a solution to high gas prices, rather than playing politics and just complaining about the problem.

If you’re interested in sending a message to Washington to start drilling now, Newt Gingrich has championed an effort to get them to start. Click here if you’re interested.

Exxon Mobil Setting New Records In Income Tax

Exxon Mobil reported this week that it set an all time new record— not in earnings or profit, but in income taxes paid to the government in a single quarter. Exxon Mobil paid $9.32 billion in income taxes in the first quarter of 2008 alone, which is a record for U.S. corporate taxes. Profit was $10.89 billion, which was the second highest ever for a U.S. corporation in one quarter. Total overall tax burden for Exxon Mobil this quarter was $29.3 billion if you include income taxes, sales taxes, and “other” taxes, which turns out to be a 25% total tax rate when you examine total revenue ($116.85 billion). Taxes paid by Exxon Mobil was nearly triple what they made in profit.

Exxon Mobil

With oil prices and gas prices through the roof, this warrants some examination. If you haven’t already noticed, the discussion of corporate taxes is an acute political issue. On one side, you have the Republicans, who are for tax cuts for pretty much everyone (including businesses). On the other side, you have Democrats who claim they want tax cuts for the poor and want to stick it to businesses (like Exxon Mobil) and the “rich”. While “tax cuts for the rich” tugs at the heart-strings of every person with wealth envy in this country, it doesn’t really make much sense in the end. Who are the “rich” in this country? They are the small business owners, the big purchasers, and the people who employ the rest of us. What sense does it make sticking it to them? When the so-called “rich” get nailed by taxes, they make cut backs like the rest of us. They hire fewer people and they don’t buy as many nice things. Jobs and retail sales suffer and the economy slows down.

As for corporate taxes, here is the big myth debunked: Corporations don’t pay taxes! They don’t now and they never will. Corporations COLLECT taxes only. When a corporation is taxed, the corporation figures it into the cost of goods sold and it is passed onto the consumer. Only the consumer pays taxes. That’s how it is now and that’s how it will always be. Every business, including oil companies, does this. This is a stealth tax on consumers. By some estimates, this stealth tax averages out to 22% on everything we purchase. On gas purchased from Exxon Mobil and other American oil companies, it’s more like 25%. That’s 25% of every gallon going right to the federal government.

Yet, 25% isn’t enough for liberal politicians. Just a few days ago, Barack Obama called for an additional $15 billion per year tax on oil companies. This is a statement from the Obama campaign as reported by Bloomberg.com:

“The profits right now are so remarkable that one could trim them 10 percent or so, which would turn out to be somewhere in the $15 billion range,” said Jason Grumet, an adviser to the Obama campaign.

Oil companies would still have ample reason to “continue to pursue production, while at the same time providing relief to consumers,” Grumet said.

Relief to consumers? Are you kidding? How does raising taxes on oil companies by $15 billion provide relief to consumers? Does Mr. Grumet honestly believe that gas prices are going to fall after the government confiscates more money from oil companies? Of course not, this $15 billion is going to show up right at the gas pump when the national price of gas jumps an additional 15-20 cents a gallon. See the twisted logic of liberals?

There is a giant disconnect between liberals and basic economics. Yet, it gets them votes on election day because of the ignorance of the public. The myth of corporate taxes continues to prevail among the masses and people think that by taxing oil companies that somehow it doesn’t affect them. It does, and it is probably one of the most devious methods our government uses to tax us–the stealth tax.

SHOCKER: Eliot Spitzer’s Party Affiliation Ignored

Yesterday morning, the governor of New York and former Attorney General, Eliot Spitzer, confessed to inappropriate behavior relating to a prostitution ring. Of course, one can only imagine what kind of behavior we are referring to. The irony drips heavily from this story as Spitzer is known for his arrogant demeanor and overly aggressive tactics at prosecuting all sorts of moral crimes on Wall Street. Spitzer had prosecuted prostitution rings/organized crime in the past and was elected as Governor on a platform of integrity and bringing morality to the Governor’s office. Oh, the irony!

But I’m not here to catalog this ongoing scandal. If you’re interested, you can always watch the news. What I am here to do is point out how Eliot Spitzer’s party affiliation is rarely mentioned in the news. When the Larry Craig bathroom sex scandal broke, you heard “Republican” just as often as you heard Craig’s own name. It’s amazing to note how Spitzer’s close ties to Hillary Clinton haven’t made news yet or the fact that Spitzer is New York’s most prominent state Democrat.

USA Today’s print edition report of the story this morning started like this:

New York Gov. Eliot Spitzer was the brash Wall Street corruption buster who made ethics his trademark. He was on many lists of future presidential contenders. On Monday, he apologized after he was accused of meeting a high-priced prostitute in a Washington, D.C., hotel last month.

What’s the big deal right? There’s no mention that he’s a Democrat. Later in the story, this is how it refers to the Republicans involved in scandals.

Sen. Larry Craig, an Idaho Republican, is serving out his term despite being arrested on an accusation of soliciting gay sex in an airport men’s room. He pleaded guilty to disorderly conduct. In a more direct parallel, Sen. David Vitter, a Louisiana Republican, was identified last year as a client of a D.C. madam. He is still in office. “It’s hard for Republicans to argue that Spitzer should go when Vitter is still in,” Sabato says.

On top of that, on the TODAY show this morning, somehow the “amazing journalist” Matt Lauer and Meredith Vieira managed to go an entire FOUR HOURS without mentioning that Spitzer was a Democrat. During that four hours there were eleven segments on Spitzer! Shocking? Maybe, but if you’ve followed the media bias in this country you can’t actually be shocked by this.

If you don’t think there is distinct media bias in this country for the Democratic party then you’re either not watching the news or you’re not watching the news closely enough. Conservatives should take heed not to rely on headlines for our news…there is always more to a story than what news sources such as USA Today and the TODAY Show tell you.

Good for them: NY Republicans Threaten to Impeach Spitzer

Exxon Mobil: Pays more tax than 50% of Americans combined

From many of the politicians in Washington, you hear over and over about how BIG OIL is the enemy. Barack Obama actually said several weeks ago that America needs to free itself from the “tyranny of oil”. Similar rhetoric is common throughout the left. Maybe someone on the democratic side of things should explain to us how oil companies are tyrannical. Oil companies provide a needed resource that every American regularly uses. Without oil, we’d be cold in the winter and we wouldn’t be able to drive our cars. And now as it turns out, if BIG OIL (particularly Exxon Mobil) weren’t around and profitable, the treasury would be about $27 billion dollars smaller every year. Exxon Mobil has paid an average of $27 billion in taxes annually over the last 3 years.

These are simply amazing statistics that were published at Seeking Alpha by Mark J. Perry, Ph.D. The most recent IRS data to compare the U.S. individual taxpayer’s tax burden to Exxon Mobil’s tax burden is from 2004.

  • Total number of tax returns: 130 million
  • Number of Tax Returns for the Bottom 50%: 65 million
  • Adjusted Gross Income for the Bottom 50%: $922 billion
  • Total Income Tax Paid by the Bottom 50%: $27.4 billion

So, the bottom 50% of individual taxpayers (65 million total) in this country paid a total tax rate of 3% in 2004 ($27.4 billion/$922 billion). Compare that to Exxon Mobil in 2006, which posted taxable income of $67.4 billion and paid $27.9 billion in taxes for a total tax rate of 41%. Unbelievable.

The big spenders in Washington should be singing the praises of the big oil companies, since it seems that one company funds more of the federal budget than 65 million taxpayers. Maybe Exxon Mobil should receive a fat tax rebate check come May of this year. I’m not going to hold my breath on that one. After all, Exxon Mobil doesn’t have 65 million votes and the ability to sway an election.

Here’s the full article if you’re interested in reading more.