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To: OneWingedShark

It is essentially telling private companies where they can sell their product by penalizing them if they sell on the international market ... meanwhile other oil companies would be free to sell on the international market.

Also, unless we also set domestic prices (which would be tantamount to nationalizing) the price of oil would not be cheaper domestically.

Now, maybe that’s the way we’ll have to go. But I’m just making the point that oil is not going to be cheaper by strong-arming companies to sell domestically.


42 posted on 03/15/2012 8:26:54 AM PDT by Lorianne (fedgov, taxporkmoney)
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To: Lorianne

>It is essentially telling private companies where they can sell their product by penalizing them if they sell on the international market ... meanwhile other oil companies would be free to sell on the international market.

It is taxing the sale on foreign markets of domestically produced petrol, true. (Though I should point out that traditionally tariffs were applied against incoming goods.)

>Also, unless we also set domestic prices (which would be tantamount to nationalizing) the price of oil would not be cheaper domestically.

I think the domestic prices are a bit more complex than most think, mainly to do with taxation and regulation bureaucratic nightmares, but not uninfluenced by “speculation.” (Ever notice that any time there’s strife in the mid-east speculation id the price goes up, in fact, the speculation is almost always “the price goes up”.)

>Now, maybe that’s the way we’ll have to go. But I’m just making the point that oil is not going to be cheaper by strong-arming companies to sell domestically.

No; the obvious solutions would be: a) release the environmental stranglehold on development (industrial as well as the extraction), and b) drop taxes to something reasonable (IIRC about 50 cents is tax, and 3 cents is profit; though these may be outdated it still illustrates the ridiculous ratios involved).


46 posted on 03/15/2012 9:05:27 AM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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