As headlines across the country noted, the $3.8 trillion budget would “delay” debt reduction, continue annual deficits at about $1 trillion per year,  and include a new $350 billion “stimulus” package.  Though he had told Congress in September that (future) budgets would hold annual deficits under $600 billion per year and raise foreign-held U.S. debt to $17.7 Trillion (73% of GDP) by 2021, the new budget shows “out year” figures higher than $600 billion deficits in 9 of 10 years, and foreign-held U.S. debt at $18.7 Trillion — a full $1 Trillion higher, at 76.5% of total U.S. economy.

The President has also been consistent on energy policy since he was a candidate and in his State of the Union address, when he promised  an “all of the above” energy policy:  he called for elimination of tax incentives worth about $4 billion per year for some U.S. oil companies.  Those few companies would be damaged competitively, as the only ones targeted for reduced incentives that would double-tax them (on overseas earnings), eliminate the 2% manufacturers tax credit (that would continue for every other U.S.manufacturer), and end (for the largest U.S. oil companies only) tax treatment on drilling and related costs).   Russian, Venezuelan and Chinese National Oil Companies (among others) are gleeful at the prospect of weakened American companies.

Of course, the budget would spend millions more to increase energy efficiency in buildings, $310 million to make solar cost-competitive by the end of the decade, and $95 million to help develop offshore wind technologies.  Those desires are consistent and repetitive as can be.

White House Chief of Staff (and former OMB Director) Jacob Lew oversaw this budget; he defended it on every Sunday talk show, forgetting Obama’s pledge as a candidate to halve the annual deficit by the end of his first term.

Once again, the President has decided to ignore all the discussion and need for budget cuts and smaller deficits.  He continues to throw money at “green” energy schemes and companies in hopes that they will provide manufacturing jobs by the million, and will turn the U.S. economy around before the November elections.  He promised those things as a candidate and he remains consistent on his energy policy goals, tax subsidies to favorites, and the intent to damage the competitive U.S. oil and gas industry — the engine that drives the American economy.

Emerson and Einstein knew what they were talking about.

“America can continue to lead the world in innovation and development, and under the right policies it will. We can’t afford to limit ourselves by allowing the government to favor certain industries; government has never been good at picking winners and losers. The U.S. business environment should encourage growth to lure business back to the U.S. Such a policy would simultaneously bolster our energy independence. Those things can only happen if, rather than target the oil and gas industry, the president would realize how vital it is to all our dreams for America.”

Please click here to read the rest of my commentary.

Continue to mislead the American people by calling law-based tax treatments “subsidies” to U.S.-based integrated oil companies (though every company is protected against double taxation on overseas earnings, and every manufacturer has the right to the  manufacturers’ tax credit).

Continue to misuse “subsidy” to justify unrelenting efforts to impose new taxes on the largest U.S.-based oil and gas companies (and render them less competitive vis a vis foreign-based national oil companies expanding efforts and investments seek new energy supplies in U.S., Cuban and South American waters).

Continue huge subsidies, grants, interest-free loans and hand-outs to “green” energy companies that claim ”near-economic” technologies to transform America’s energy-based economy  (ignoring the decades such change will take, and the list and scale of recent failures, misappropriations, shady contracts and misdealings that continue to waste taxpayer money).

Promise tax breaks to U.S. manufacturers who build  facilities in this country (while seeking to eliminate that tax credit for U.S. oil companies’ refinery facilities here).

Promise to double the new manufacturers tax credit for “high-tech” companies (although a definition of “high-tech” will lead to countless law suits — and although the oil industry is one the most high-tech on earth, it remains threatened by tax credit removal).

Continue to delay a pipeline that would open new Canadian oil supplies to U.S. refineries and customers and would create at least 17,000 new U.S. jobs during the two- to three-year construction period (all to pander to environmental groups whose im is to prevent Canada from developing its huge resources in Alberta.  The pipeline critics hope to stop development of the resource; they  ignore the fact that the Chinese National Oil Company has bought 30% of one development project and has set aside $12 Billion to pipe Canadian oil to Pacific ports for new Chinese ships to move to China).

Announce with a flourish that he will “open” the Gulf of Mexico to new exploration and development leases, but never mention the fact that his action delayed those lease sales by 2 years or more.

And slow domestic exploration and development of astounding new resources of oil and natural gas, now that the oil companies have developed the technology to provide for U.S. needs for decades into the future.

So that’s it.  The President’s real understanding and goal when he speaks of “an all of the above energy policy.”

Kucinich says the revenues would fund tax credits for the purchase of fuel-efficient cars and a grant program for mass transit riders when oil and gas prices are “unreasonable.”

So, as I say, “Thank God for Dennis Kucinich.  Think about this:

As documented over and over by government and others, oil-and-gas industry profits typically run below (often far below) the profit rates of many other industries;

So if other-industry profit levels set the Board’s baseline, what would this bill do?

It would provide jobs for Presidential friends who have no pension fund, no 401(k), no IRA, no personal investments, no mutual funds, and no hope for retirement — ever.

So, thank God for Dennis Kucinich.

For years, many of us argued that the $0.45 per gallon tax credit for adding ethanol to gasoline was stupid, since federal law required oil companies to blend at least 10% ethanol into each gallon of gasoline they sold.  Oil companies agreed; a combination of a mandate and a tax incentive made no sense.

We also argued that the $0.54 per gallon tariff on imported ethanol should be abolished.  It almost was, at the end of 2010, but at the last moment Congress extended both tariff and tax credit (continuing a cost of $6 Billion per year on Americans who drive cars or who use sugar and sweeteners — all of us.)

But this year Congress let the tariff and the tax credit expire.  The mandate for ethanol content in gasoline goes on; in fact Congress raised the mandated ethanol percentages and volumes from 10 billion gallons several years ago, to 14 billion now, and 36 billion by 2022.  Shame on them.

But now we can say, “Congress finally did one thing right.”  And no one who signed the “No new taxes” pledge can call for reimposition of the blenders’ credit or the import tariff, since reimposition is different from continuation.  Reimposition would add $6Billion per year in new taxes to on Americans!

Maybe 2012 will be a better year.  Let’s hope so.  Happy New Year.

Click here to read the full article.

I still felt that his statements were out of line — and I’m part of the Notre Dame family, so I wrote him this letter:

Coach:

Please think about your recent comment degrading non-Kelly recruits; then think about some Notre Dame history.  It may provide a lesson and a model for you to imitate and aspire to.

Over 50 years ago a successful NFL Coach, Joe Kuharich, took over as the Irish football coach, and became the only losing non-interim coach in Irish history.  In the 1959, 60, 61 and 62 seasons (and several more), NCAA rules precluded any freshman from playing varsity games — very relevant in this context.

Huey Devore was interim coach in 1963, and went 2-7.

Then Ara Parseghian took over.  His 1964 team was all Kuharich recruits whose only loss came in the last two minutes of the last game.  USC ended the Irish unbeaten streak and all hope for a national championship.  The MacArthur Trophy was almost a consolation prize.  Two years later the Irish won the first of two “Era of Ara” national championships.

Kuharich was a better recruiter than he was a college coach — thus more than one of his Irish players are in the NFL Hall of Fame.  More important, Parseghian was a great coach who brought out the best in every player — and who never blamed anyone else for losses.

I hope the “family matter” is in the past, but remember: you have the greatest receiver in Notre Dame history, a running back who has broken George Gipp’s record, and other  fine non-Kelly recruits.  Then think of Parseghian and the way he went about his work.  You are standing on his shoulders.  Earn that right; don’t spoil it again with petulant finger-pointing.  Go Irish!

Sincerely, John L. Rafuse

The institute writes, that, “If the targets of discrimination are the nation’s largest firms the country will find it harder to compete on a global scale in industries that require dedicated research for decades, industries that exhibit huge scale economies, and industries that network across national borders.”

This is especially true for U.S. oil and natural gas companies – some of our nation’s largest companies – who compete against much larger state-owned enterprises around the world.

Click here to read the full report; I highly recommend it.

The State Department’s public meeting in Austin tonight will give Texans a chance to weigh in on the proposed Keystone XL Pipeline. This massive infrastructure project-stretching from Hardisty, Canada to Houston and Port Arthur-has the potential to really boost our economy and give us a big leg up in securing our future energy supply from a close, friendly ally. And while tonight’s meeting at UT will likely showcase a wide range of views, I hope that in the end actual facts rather than inflated fears prevail.

What facts? Well, Keystone XL’s economic benefits for Texas cannot be overstated, especially in this bad economy. According to the Perryman Group in Waco, construction and development of Keystone XL throughout the lifetime of the project will inject more than $2.3 billion in increased business activity into the state. Additionally, a $1.6 billion jump in personal income will result. And the pipeline will pump $7.7 million and $41 million into local and state government treasuries respectively.

Click here to read the rest of the post.