McCain/Palin '08!

"John McCain is seriously considering choosing a pro-abortion-rights running mate despite vocal resistance from conservatives, with former Democratic vice presidential nominee Joseph I. Lieberman (I-Conn.) very much in the mix, close McCain advisers say."Is he really? What about Rudy?
"Over the opposition of oil companies, Republican Gov. Sarah Palin and Alaska’s Legislature last year approved a major increase in taxes on the oil industry — a step that has generated stunning new wealth for the state as oil prices soared. …Now, I'm happy to wait and see what Palin supporters have to say about how she possibly could support such a tax, but the problem is it stands against the very principles of free market and what it means to be a quality conservative.
BP Alaska, which runs Prudhoe Bay, said earlier this year that it had delayed the development in the western region of the North Slope as a result of the tax. ConocoPhillips cited the same reason for scrapping a $300 million refinery project.
'What the tax has done is take away all the upside,' said Doug Suttles, president of BP Alaska. The U.K.-based oil company paid more than $500 million in taxes to Alaska last quarter — far more than it earned in profits from Alaskan oil, according to Suttles.
Investment dollars are flowing instead to places that have a better return, like the massive deep-water projects offshore in the U.S. Gulf of Mexico, where ConocoPhillips said the government take equals less than 50 percent of the barrel."
"The Alaskan tax system basically, because it has a progressive rate, basically says that oil companies can make about the same amount of net profit per barrel of oil whether the price is $80 or $120 per barrel. It's not exactly the same, but it's pretty close.
Now, there is an incentive inherent in this to drill more. Drilling more means more supply. More supply means lower oil prices. Lower oil prices means a lower tax rate per barrel. But, and this is the important part, an oil company in theory would make more money (more total profits) through more drilling because they'd be selling more barrels of oil.
As an aside, there's also an incentive towards greater efficiency. The tax takes effect after something like $25 or $30, which is considered the break even cost for a barrel of oil. If a company can figure out how to be more efficient and how to retrieve that oil for $20 per barrel, for example, then there's an additional savings.
By contrast, a windfall profits tax addresses those total profits. The idea is to look at how much a company makes in total profits for a quarter and, depending upon conditions, to assess an additional tax.
Now, I still think, as a matter of political perception, that the language to use is that Palin is against oil companies getting per barrel tax incentives that they got at $60 or $80 per barrel. But, if the oil companies drill and prices go down, then those tax incentives or rebates come back into force. The idea is that everyone wins: If oil companies drill more, then prices go down. If they sell more barrels, then their total profit is better. And, if the state still gets its money (lower tax per barrel of oil but more barrels of oil).
Oil companies will say that it provides a disincentive to explore, but the reality is that the federal government won't allow them to explore where the oil is. If that obstacle were removed, then there most assuredly is an incentive to explore, as oil companies would realize even greater total profits through greater supply.
"Louisiana Gov. Bobby Jindal has spoken with the McCain campaign about a “prominent speaking role” at the convention, possibly the keynote, according to Louisiana Republican Party Chairman Roger Villere."I've been pushing for this for quite some time. Jindal would be a great VP candidate if it weren't for his age. He's a very solid conservative who has accomplished more in his time serving Louisiana than the Democratic nominee for President ever has. However, his age may be a serious turn off to voters.
“I am pleased to see Senator Obama acknowledge the huge potential Alaska’s natural gas reserves represent in terms of clean energy and sound jobs,” Palin says in the release. “The steps taken by the Alaska State Legislature this past week demonstrate that we are ready, willing and able to supply the energy our nation needs.”And an article about what Pawlenty had to say today:
"Pawlenty said that Republicans such as Ronald Reagan had ideas, but he added that in recent years, 'The Republican idea factory has seen a little stagnant.'Now the question is, why do we have two serious candidates for the VP nomination saying good things about Obama at a point when McCain has had his opponent on the ropes?
Pawlenty offered positive comments about Democratic presidential candidate Barack Obama, saying 'people gravitate when you have something positive to say.'"
"Sen. Barack Obama (D-Ill.) on Friday announced an 'Emergency Economic Plan' that would give families a stimulus check of $1,000 each, funded in part by what his presidential campaign calls 'windfall profits from Big Oil.'"Sweet holy crap. This man went to HARVARD! Does he not realize that taxes applied to companies only force those companies to pass the costs onto consumers? Either Obama is completely without any principle whatsoever or he is the stupidest man to ever attend Harvard.
"Obama's proposal is to impose a huge tax on oil companies, and use the proceeds to subsidize energy costs of low income folks. The first half of that proposal will greatly increase energy costs.
The entire thing boils down to a transfer of wealth and increasing the dependence of people on government, but -- and this is the slick part -- using oil companies as a middleman to shield the government from the populace's wrath.
The middle class will be upset about $6/gallon gas, BUT their ire will be directed more at oil companies, than at Obama's government."