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To: reaganator
Whenever taxes push the price of oil from domestic producer wells above the price of imported oil they shut down the wells ~ easily done with a switch on the pump.

Obviously the government loses any royalties if those wells are on government owned land.

Given the very high price of pumping US oil taking away normal tax deductions for costs incurred in producing that oil will result in a rather large scale shutdown of American wells.

Senator Brown probably ought to retire ~ it's clear he's no longer able to think through this topic.

5 posted on 04/28/2012 3:05:47 PM PDT by muawiyah
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To: muawiyah

The goal is to create the necessity of nationalizing the oil industry.

If the oil industry can longer produce oil profitably, they won’t. The nationalizing of the oil industries “for the good of the people” will ensue.


6 posted on 04/28/2012 3:10:01 PM PDT by reaganator
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To: muawiyah

“Obviously the government loses any royalties if those wells are on government owned land.

Given the very high price of pumping US oil taking away normal tax deductions for costs incurred in producing that oil will result in a rather large scale shutdown of American wells.”

I know that I would have to go on welfare because all of my income except SS comes from wells that would have to be shut in and I am to damn old to go back to work.

Also state governments receive revenue even if the well is not on government land. In Oklahoma we pay a gross production tax of 7.2 % off the top. That is even if the well is operated at a loss, we still have to pay 7.2 % of the gross revenue. I don’t know many other businesses that have such a tax burden.


9 posted on 04/28/2012 3:23:19 PM PDT by Okieshooter
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