I realize Barack Obama graduated magna cum laude from Harvard and was Editor of Harvard Law Review, but I'm starting to think he's not that bright — or at least lacks sense (never mind that he won't release his college transcripts).
He's definitely an amateur and it shows when, late yesterday, Obama came out in favor of even higher gas prices.
As a friend noted on Facebook, Obama's popularity is falling so fast that Kenyans are now claiming Obama was born in the United States. This won't help that.
Now, he does not say he is in favor of higher gas prices (though his Secretary of Energy does), but Obama wants Congress to "take 'immediate action' to end tax subsidies for oil and gas companies"
The two subsidies Barack Obama specifically wants Congress to kill are the “percentage depletion” and “intangible drilling costs (IDCs)” tax incentives.
Enter Democrat Congressman Dan Boren who explains why doing so would drive up the cost of oil production, make us more dependent on foreign oil, and — oh by the way — points out that getting rid of these would not affect Exxon, Shell, BP, Phillips-Conoco, etc. in the least little bit.
Specifically, the Administration is seeking to repeal the “percentage depletion” and “intangible drilling costs (IDCs)” tax incentives. The removal of these provisions would negatively affect domestic independents who utilize them to attract the capital necessary to drill new oil and gas wells inside the United States. It is estimated that eliminating percentage depletion and IDCs for domestic independents would reduce U.S. drilling by 30-40 percent, thereby increasing the nation’s dependence energy from foreign sources. Furthermore, the major oil companies are barred by law from receiving percentage depletion altogether, as it only is given to domestic independent producers. The IDC preference is only available for domestic drilling activity, and as the major oil companies drill primarily outside the U.S., the domestic independent sector of the industry will yet again bear the brunt of losing this critical provision.
So, getting rid of these would only affect small businesses.