Have you noticed that the mood of the country has changed regarding energy?

Last year, THE solution was all about growing our own energy by using ethanol. The emphasis was on reducing our carbon footprint and dependence on foreign oil, regardless of the cost.

But rising food prices and the fact that ethanol was a boondoggle (using as much energy as it supplied) caused ethanol's reign to slip from political popularity.

Then came Newt with his Drill Here.Drill Now.Pay Less. campaign. While I am surprised that he never did get those 3 million petition signers, he certainly started the conversation that we must start producing more oil domestically.

It was a conversation the President and House Republicans were willing to listen to. Nancy Pelosi and the House Democrats, however, were not. In fact, she shut down the House for 5 weeks!

During that 5 weeks off, around 130 House Republicans kept the heat on the discussion in the House. See YouTube

Also during the summer, the polls started showing that 67% of Americans favored domestic drilling.

John McCain responded to that fact by embracing offshore drilling. Certainly his picking Palin indicates he is looking at domestic oil and increasing natural gas. The Republican ticket has an "All of the above" approach. (Oil, clean coal, natural gas, tidal, hydro, hydrogen, geo-thermal, nuclear, wind, solar, etc.)

Barack Obama wouldn't go that far, but did promote getting off foreign oil dependence by increasing clean coal, natural gas, and safe nuclear as additions to the usual wind, solar, etc.

But while all this new domestic energy posturing was going on, Pelosi and the House Democrats were not available until this week. On Monday:

"House Majority Leader Steny Hoyer (D-Md.) said Monday morning that the newest Democratic energy bill will be brought to the floor under normal rules and will be subject to a vote on a Republican alternative that is likely to call for even more drilling than Democrats are prepared to swallow.

So finally, she and the House Democrats are willing to allow a vote on drilling!

"Pelosi miscalculated in her heavy-handed tactics before the recess.  She attempted to push through her own plan under suspension of the rules, a tactic she decried in 2006, which kept Republicans from offering an alternative.  When it failed, she adjourned Congress, hoping to put off the debate until after the conventions … and her book tour.

"Instead of regrouping, the Democrats found themselves routed by an angry electorate and motivated Republicans.  The House Oil Party kept the issue in the media eye, at least to an extent, but high gas prices kept it on the minds of voters while Democrats took their summer vacation.  It was as poor a political calculation seen in recent years, and the sudden shift in generic Congressional ballots and in party identification has been the result.

"Pelosi and Harry Reid may have finally figured out that they could lose this election on energy policy.  Will this be enough to stanch the bleeding? (My emphasis)

This vote would have never happened without public pressure. We tend to forget that fact. But don't jump for joy just yet.

The next hurdle will be, what kind of energy bill gets passed? Will it be a real energy bill that truly increases drilling opportunities and new energy sources? Or will it be just all show and no go? as a token attempt by Democrat Congressmen and Senators up for reelection to appear sympathetic to energy prices?

But House Republicans called the Democrats' proposals "gimmicks," and instead have insisted on a stand-alone vote on oil drilling.

"Speaker Pelosi's so-called 'energy' bill will do nothing to help our energy crisis," said Rep. Michele Bachmann, Minnesota Republican. "It will multiply red tape and make it almost impossible to lower already skyrocketing oil costs." (My emphasis)

Stay tuned! 

Please, comment content should relate to the subject of the post.

Links: 

Brookfield7, Fairly Conservative, Betterbrookfield, Mark Levin,  Vicki Mckenna

President Bush urge[d] Congress to end ban on offshore oil drilling today: (My emphasis)

"Democrats on Capitol Hill have rejected virtually every proposal, and now Americans are paying the price at the pump for this obstruction," Bush said.

About 60% of Americans support government moves to encourage more oil drilling and refinery construction as a way to combat soaring energy prices -- but the same number also profess to be in favor of conservation, according to a Reuters/Zogby poll released Wednesday. [We should drill and conserve?]

The Presidential candidates are lining up along party lines on opposite sides of the domestic drilling coin: 

Republicans, including presidential candidate John McCain who announced his position this week after opposing it in the past, increasingly support lifting the ban on offshore oil drilling.

Barack Obama who is running for president, and fellow Democrats, oppose it over environmental concerns and say such action would have little immediate impact on fuel prices.

Despite the President's plea, the Democrats in Congress' Appropriations Committee blocked the measure from coming for a vote today. So the President proposes, Congress disposes. No help from Congress.

Some Democrats did propose that government take over some refineries though!

House Republicans tried to lift the ban before, "Time after time in recent years, drilling advocates have been unable to get the votes in Congress. When Republicans controlled Congress in 2006, the House of Representatives agreed to overturn the ban on offshore drilling, but the measure died in the Senate."  The ban has been in effect since 1981.

Bush admitted his proposals "will take years to have their full impact" but he said that rather than it being an excuse for delay, "it's a reason to move swiftly" and called on Congress to change the lift the moratorium by the July 4 recess.

With 67%* of American voters supporting more domestic drilling, what are we to do with our Congress that is so unresponsive? How about signing the Drill Here. Drill Now, so we can Pay Less petition?

Drill Here just reached the 1 million mark. The goal is 3 million signatures by the Democratic and Republican Conventions.

Click DRILL HERE. DRILL NOW. PAY LESS. to sign the petition and see the latest links to related news articles (updated every day). 

*Latest Rasmussen poll 

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Oil companies have made a lot of money and some in Washington think they should get a bigger cut. The Senate recently tried to snatch some of those profits with their attempt to resurrect the Windfall Profits Tax bill. Thankfully, the Senate Republicans stopped that piece of legislation ...for now.

I am sure we will see that tax tried again. After all, Obama is campaigning, "I'll make oil companies like Exxon pay a tax on their windfall profits, and we'll use the money to help families pay for their skyrocketing energy costs and other bills," the Illinois senator said.

Generally, Democrats seem to think that oil companies just do not have the right to keep their profits. They don't seem to have that same aversion to other corporations' profits though. I heard on Jay Weber recently that oil companies made about 7.5% in profits.

How does that compare to other industry profits? Weber said Banking made 20%, Pharmaceuticals 18%, Insurance 11%, and Beverage/Tobacco 9.4%. So oil companies 7.5% is excessive and these other industries are not? Does it seem there is a double standard here?

Weeks ago, Sean Hannity broke down the profit per gallon of gas that oil companies received. We're paying around $4/gal. Oil companies get about $0.08/gal. Taxes on a gallon are around $0.19/gal for Fed. and State, I think. Again, oil companies seem to be getting the lesser amount.

How much profit does an oil company like Exxon make? Mark Perry, on Seeking Alpha, a Stock Market Opinion/Analysis site shows that last year they had pre-tax profits of $70.61 billion. Wow, that is a lot of money!

Some of you might be muttering to yourself how unfair it is that these filthy rich companies are making all the money and WE (via taxes to government) should be getting some of it.

But here is a figure the news media does not talk about very much; the amount Exxon pays in taxes. Perry includes an interesting chart showing the profits vs. taxes: $40.6 billion in after tax profits, $30 billion in taxes. Exxon averaged over the past 3 years to pay $27 billion in taxes each year. He compares that to regular taxpayers contribution to the IRS:

According to IRS data for 2004, the most recent year available:

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

Conclusion: In other words, just one corporation (Exxon Mobil) pays as much in taxes ($27 billion) annually as the entire bottom 50% of individual taxpayers, which is 65,000,000 people! Further, the tax rate for the bottom 50% is only 3% of adjusted gross income ($27.4 billion / $922 billion), and the tax rate for Exxon was 41% in 2006 ($67.4 billion in taxable income, $27.9 billion in taxes).

This was not enough for the Senate Democrats (and a few Republicans) though. They wanted more. 

No doubt about it. We have high energy prices and future prices don't look any better, but taxing oil companies more will not lower the price at the pump!  Would you want to work harder to increase production only to have more of your profit taken away?

FYI:  Neighborhood Information Meeting tonight for Fire Station #3 move 

Links:

The Windfall Profits Tax Bill was blocked by the Republicans Tuesday:

GOP senators shoved aside the Democratic proposal, arguing that punishing Big Oil won't do a thing to lower the $4-a-gallon-price of gasoline that is sending economic waves across the country. High prices at the pump are threatening everything from summer vacations to Meals on Wheels deliveries to the elderly. ...

..."In the middle of what some are calling the biggest energy shock in a generation ... they proposed as a solution, of all things, a windfall profits tax," Republican leader Mitch McConnell of Kentucky chided the Democrats. He called their proposal "a gimmick" that would not lower gasoline prices and only hold back domestic oil production.

"The American people are clamoring for relief at the pump," agreed Sen. Pete Domenici, R-N.M., but "they will get exactly what they don't want" under the Democrats' plan — higher prices and an increase in oil imports.

The Democrat supporters said this tax differed from the 1980s version because "oil companies could avoid the tax by using their 'windfall' to push alternative energy programs or refinery expansions*." Senate Republicans weren't buying that argument though and so the Democrats couldn't get the 60 votes needed to stop the GOP filibuster.

Wow! The Senate Republicans were on a roll yesterday; they went on to block a 2nd bill: 

Shortly after the oil tax vote, Republicans blocked a second proposal that would extend tax breaks that have either expired or are scheduled to end this year for wind, solar and other alternative energy development, and for the promotion of energy efficiency and conservation. Again Democrats couldn't get the 60 votes to overcome a GOP filibuster.

This on the heels of Friday's block of the Cap-and-Trade bill. Maybe the Republicans are finally getting the hint that most Americans don't want all these taxes on corporations that get passed on to us?

Do I dare hope that the GOP would push for more domestic drilling and building additional US oil refineries? That would make a positive difference in future energy supply/costs.

But the bigger picture issue with the Windfall Profits Tax is, whose money is it anyway? Don't corporations, and individuals for that matter, have a right to make money?

What gives the government the right to arbitrarily say, you are making too much, we are going to take more of that. That is not a Windfall Profits Tax, that is socialism.

*Correct me if I'm wrong, but don't oil companies face opposition whenever they want to build new oil refineries? 

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Just in case you missed this from the weekend news, the Sunday Journal reported in its Congress Following the Vote column,

GLOBAL WARMING FILIBUSTER  Voting 48-36, the Senate on Friday failed to reach 60 votes needed to end a Republican filibuster against an updated version of global warming bill. Democratic leaders then pulled the bill from the floor, perhaps for the remainder of the year. A yes vote was to advance the bill. McCain and Obama did not vote.

No surprise here, Feingold and Kohl voted YES to advance the bill. (So much for their sentiment that they will keep my thoughts in mind as the global warming debate moves forward.)

We are off the hook for right now. I would bet Senate offices were bombarded with negative calls and emails on cap-and-trade. I would also bet that this bill will return either in its entirety or in bits and pieces like the amnesty bills have returned. They are hoping for a time when we aren't paying attention! 

Past Post: Cap-and-Trade? Maybe it should be called Cap-and-RAID!

More reading:

George Will's Cap-And-Trade: A Devious Tax Plan

Good chart of key players and terms explained at end: Senate taking up key climate-change bill 

The Heritage Foundation's Morning Bell: Carbon Capping in Bizarro World 

Links:

Last night I heard Senator Inhofe (R-Oklahoma) on the Mark Levin Show.  They were discussing S. 2191, the Senate "Lieberman/Warner Global Warming Bill and the disastrous effect this would have not on just the country as a whole, but the individual." (My emphasis throughout post.)

Wall Street Journal referred to Cap-and-Trade as Cap and Spend

As the Senate opens debate on its mammoth carbon regulation program this week, the phrase of the hour is "cap and trade." This sounds innocuous enough. But anyone who looks at the legislative details will quickly see that a better description is cap and spend. This is easily the largest income redistribution scheme since the income tax.

The Washington Post said, Just Call It "Cap-and-Tax" 

"...One of the bad ways [to control greenhouse gas] is cap-and-trade. Unfortunately, it's the darling of environmental groups and their political allies.

The chief political virtue of cap-and-trade -- a complex scheme to reduce greenhouse gases -- is its complexity. This allows its environmental supporters to shape public perceptions in essentially deceptive ways. Cap-and-trade would act as a tax, but it's not described as a tax. It would regulate economic activity, but it's promoted as a "free market" mechanism. Finally, it would trigger a tidal wave of influence-peddling, as lobbyists scrambled to exploit the system for different industries and localities. This would undermine whatever abstract advantages the system has.

...Call this "environmental pork," and it would just be a start. The program's potential to confer subsidies and preferential treatment would stimulate a lobbying frenzy. Think of today's farm programs -- and multiply by 10.

After listening to Senator Inhofe, I think we could also refer to it as Cap-and-Raid! If it passes, it will raid every worker in America's wallet!

Senator Inhofe said, Senator Barbara Boxer insists this is not a tax bill. But if you have looked into the bill itself and at the linked articles, it is difficult to understand how this could not be considered a tax bill.

Inhofe then quickly listed some points to ponder. He mentioned the Wall Street Journal referring to it as the most extensive reorganization since the 1930s. He called it worse than the Kyoto Treaty for the economy. Cap-and-Trade will need 45 more Big Government Bureaucracies to enforce the standards.

Using Boxer's figures, Inhofe pointed out that Cap-and-Trade would collect $6.7 Trillion dollars from industry (those costs will be passed onto us!). The maximum rebate to customers is $2.5 Trillion dollars. Do the math: That means $4.2 Trillion goes where?

That sounds like a tax to me!

He went on to remind us that the Democrats have killed every domestic drilling bill. The US relies on coal for 53% of all of its electricity production. Cap-and-Trade will tax coal fired electricity production. Consider that China "cranks out a new coal electric plant" every 3 days (?). (I think he said 3 days, which fits with this - certainly between India and China it would be true.)

Manufacturing jobs will go where there is (cheap) energy/power, Inhofe said. This is also what Congressman Sensenbrenner talked about at his Town Hall Meeting when he called Cap-and-Trade "Catastrophic for Wisconsin". I would add that manufacturing jobs will also go where environmental regulations are more lax.

Senator Inhofe suggested people take a look at Liberman-Warner Opposition Resource Center; Impacts of Costly Climate Bill Exposed  It is chock full of quotes, links and articles.

The Senate is debating this bill this week. While some say the bill will not pass, as you know, once the foot is in the door, the issue will not go away.  Considering all 3 Presidential candidates support the concept of Global Warming, I would just say, the bill probably won't pass...yet.

Our Senators' response to my emails: Not much hope of a NO vote here--unless they feel the heat from constituents.

This is important! Please contact them both: Senator Kohl (Phone: (414) 297-4451, (202) 224-5653) and Senator  Feingold (Office of Senator Russ Feingold | 202/224-5323) and let them know what you think about this bill.

More reading:

George Will's Cap-And-Trade: A Devious Tax Plan

Good chart of key players and terms explained at end: Senate taking up key climate-change bill 

The Heritage Foundation's Morning Bell: Carbon Capping in Bizarro World 

Links: