Friday, February 5, 2016

Politicians Know #Taxation, Poor Timing & #DeathSpiral

Although many will criticize the Obama Administration for this proposal, they generally ignore that all politicians know taxation. They're also very good at selling their ill-timed proposals; taxing oil as it collapses to cyclical extremes not seen since 1891, 1932 and 1998 highlights the timing (see Monthly Review of Crude Oil). This proposal, if passed, will hurt oil companies already reeling from the heavy hand of market forces. Oil companies, the perceived 'bad guys', will start raising prices as majority of Americans begin feeling the pain of the coming US recession.  Socialism likely response will be to raise taxes again to support the growing numbers of poor within an economic death spiral.

Headline: Obama to seek new tax on oil in budget proposal

U.S. President Barack Obama will launch a long-shot bid next week to impose a $10-a-barrel tax on crude oil that would fund the overhaul of the nation's aging transportation infrastructure, the White House said on Thursday.

The proposed fee, which would be paid by oil companies and phased in over five years, was quickly met with scorn by lawmakers in the Republican-controlled Congress.



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