Paying taxes (and blogging) is hard!

Well folks, the blogging part is hard anyway. I work, I commute, I sleep and eat. Sometimes there just isn't the time or energy to log in, keep coherent thoughts in my head and get them written down. And then there are those times when I hear oil companies and other multi-nationals caterwauling about their tax "burden" -- and hear their amen corner (otherwise known as the Repub party) chime in with a load of pseudo economic BS about job-killing taxes, and, well, blogging gets easy.

Let's start with the oil companies, because they are on my hit parade of BS slingers this week. Oil company execs went in front of Congress the other day and talked about how asking them to pay their taxes would do everything from kill the economy to giving aid and shelter to terrorists. Mind you, I am not talking about hitting them with burdensome, higher taxes than everyone elses taxes; I am talking about asking them to pay the same taxes every other American corporation is supposed to pay. Of course the Repub chorus tripped all over themselves to find microphones from which to decry Democratic grand-standing, politics-playing and job-killing.

So lets back up a minute and recall why the oil companies have those tax breaks anyway.

Back in the distant past, the United States Government told the oil companies what they could charge Americans for a gallon of gasoline. That was why gas was so cheap for so long and why we never got serious about fuel economy until outside forces (OPEC) took a 2 x 4 to our back-sides. Even after the oil shocks of the 70s, it took us a while to turn loose of gasoline subsidies to Joe the Plumber and every other American that pulled up to a gas pump. The same thing was true about home-heating oil, by the way.

Our pay-off to the oil companies was that they got tax breaks to make it affordable for them to explore and develop new oil sources and build new refineries. We also let them write off taxes paid to other countries to explore for oil in those countries and then gave them a break on the cost of tankers to ship the oil back to our shores. It was a fair exchange because they were holding down the cost of what we paid for gas.

Well, times changed and the oil companies joined the chorus of deregulators, environmentalists, and free-marketeers who said that it was wrong to subsidize the cost of gasoline at the pump and that the U. S. Government shouldn't do that anymore. The process started under Jimmy Carter and completed under Ronald Reagan. A lot of folks didn't notice because, in 1986, the Saudis cut the price of oil to the bone and basically dumped it on our markets (and put a lot of domestic oil drillers out of business).

And there it was. Big Oil was free of price controls and they still had their tax breaks. In the mid-90s the Saudis and OPEC started to turn the screws, new competitors came on line demanding oil and gas for their cars, and the prices started up. And the oil companies profits went along for the ride; helped, of course, by some sweet corporate welfare paid by you and me.

Does it make you a little sick and a little mad, maybe? Keep that in mind next time you hear some Repub bleating about how asking Big Oil to pay its fair share will cost jobs. But there is another problem; the Repubs may be economic fantasists (or liars), but the Democrats too often are economic ignoramuses. In all the posturing, from either side of the aisle, I didn't hear a single voice point out the simple, shameful history of how we got here with Big Oil, and how they have ripped us off. Maybe its one thing to feign indignation and another thing to do something about it.

See, the blogging part can be easy, if you get mad enough.