High pump prices are pinching the pocketbooks of seven in 10 Americans, a financial hardship that more middle- and higher-income drivers say they are beginning to feel, an AP-Ipsos poll found. People say they are driving less, cutting short vacations and curtailing their use of heating and air conditioning.
The number of people who expect rising gas prices to cause financial problems in the months ahead has jumped from 51 percent a year ago to 70 percent now, according to AP polling. This increase has been dramatic among people who earn more than $50,000.
Well, it's lousy. But you can't blame this one on Bush. After all, there really is no quick fix. As the President pointed out in his May press conference, solutions to easing gas prices will take years.
Q Mr. President, thank you very much, sir.
A lot of families are struggling to pay for gasoline at record prices. What can you do to help them in the short-term? Will your energy report address that? And do you agree with your Energy Secretary, that OPEC bears some responsibility for these prices?
THE PRESIDENT: The price of crude oil has got something to do with the price of gasoline, but not nearly as much as the fact that we haven't built a refinery in years. What this nation needs to do is to build more refining capacity. And we're prepared to work with the industry to encourage capital development, capital to be deployed to develop more refining capacity. And that may require us to analyze all regulations that discourage development…
Q Mr. President, can I follow up on that point? Your party in the past has argued in favor of either suspending or rolling back the federal gasoline tax. Will you consider doing either? And, secondly, what would you say to American families who may pay as much as $3 at the pump this summer, at the same time that oil companies in this country are experiencing and enjoying record profits?
THE PRESIDENT: What is say is I worry about the fact that hard-working people are paying high prices at the pump. It concerns me a lot…I also say we need to build more refining capacity. We need more supply. We need to meet the increasing demands with better supply. I'm optimistic in the long-term, not only will we increase supplies, but that our automobiles will become more technologically adept at dealing with the energy situation now. In other words, we'll have new types of automobiles, hybrids.
And in the energy plan I'm going to be discussing, you'll see some incentives for hybrid automobiles.
So there's the Preznit. He's concerned. A lot. So much that he's prepared to work with "the industry"(big surprise there!), and increase refinery capacity, find new sources of oil, encourage capital development, and provide incentives for hybrids.
Terrific ideas. But, please, people, don't get too excited. Ideas like this could take years to ease the price at the pump. The circumstances that led to these prices didn't occur overnight--they occurred during the Clinton administration--and the solutions won't be found overnight.
It could take four, five, six years before a comprehensive energy policy starts to show some results. So, be patient. Bush is working on it. Hard.
At least, that's what he told us in his May press conference.
In 2001.
Five years later, what is Bush saying about the high cost of oil?
To reduce gas prices, our energy companies have got a role to play. Listen, at record prices, these energy companies have got large cash flows, and they need to reinvest those cash flows into expanding refining capacity, or researching alternative energy sources, or developing new technologies, or expanding production in environmentally friendly ways….
To reduce gas prices, our energy companies have got a role to play. Listen, at record prices, these energy companies have got large cash flows, and they need to reinvest those cash flows into expanding refining capacity, or researching alternative energy sources, or developing new technologies, or expanding production in environmentally friendly ways…
If we're trying to conserve energy, if we want to become less dependent on oil, let's provide incentives for consumers to use less energy.
Listen, we need to expand our refining capacity. One of the problems we face is we've got tight supplies because we haven't expanded refining capacity. There hasn't been a new refinery built in 30 years…
Congress needs to allow refiners to make modifications on their refineries without having to wait for years to get something -- to get their idea approved. I mean, if we want more supply, let's reduce the paperwork and the regulations.
Congress also needs to simplify and speed up the permitting process for refinery construction and expansion. And so I'm going to work with Congress. It's important for Congress to cut through the red tape and guarantee refinery construction permits will be processed within a single year.
Yep.
Five years later, Bush is saying we need a comprehensive energy policy to increase refinery capacity, find new sources of oil, encourage capital development, and provide incentives for hybrids.
Which is exactly what he said in 2001.
In 2001, he wanted to increase refinery capacity. It's 2006 and, according to Bush, not one single new refinery has been built. In 2001, he wanted to find new sources of oil. It's 2006, and aside from invading Iraq, not one single new source of oil has been found. Virtually nothing has changed from May of 2001 to May of 2006. Nothing.
But you can't blame this all on Bush!
I mean, number one, Bush needs Congress to help him make all his sweet crude dreams a reality. Bush needs Congress to approve all his ingenuous ideas so that all of Bush's hard, hard work pays off for ordinary Americans at the pump.
And since 2002, Bush has been saddled with an obstructionist Republican controlled House and an uncooperative Republican controlled Senate. What's a Republican President to do? How can a Republican President be expected to pass any legislation as long as Republicans are in control of the House, the Senate, and the majority of the Supreme Court???
Number two, Bush did, in fact, like he said in May of 2001, provide incentives for hybrid automobiles.
In 2005. Four years later.
You know what Bush didn't wait four years to do? Give huge tax incentive to buy enormous gas guzzling SUVs:
DETROIT — Buying big, luxurious sport-utility vehicles could cost a lot less under the Bush administration's economic stimulus proposal, even though a Bush appointee blasted SUVs last week as dangerous fuel hogs.
Small businesses and the self-employed could deduct the entire cost, up to $75,000, from business income the year of the purchase.
That's right. A year and a half after Bush claimed he was going to provide tax incentives to purchase fuel efficient hybrids to help ease the pain ordinary Americans were feeling at the pump, Bush, instead, offered extremely generous tax incentives to purchase mammoth gas guzzling monsters which would only increase the pain ordinary Americans feel at the pump.
But you have to give Bush some credit. He did finally, after five years, follow through with his half-assed proposal to provide incentives for fuel efficient hybrids:
Federal tax rules that took effect last month allow a credit of up to $3,150 for anyone buying a hybrid car. The credit is the same regardless of tax bracket.
However, owners of small businesses who buy a Hummer, Ford Excursion or other SUV weighing more than 3 tons get a deduction of up to $25,000 - depending on tax bracket - if they use the vehicle exclusively for work.
The benefits don't stop there. Once they subtract the $25,000 from the cost of their 3-ton SUV, small-business owners can deduct the depreciation on the remaining amount. Someone who bought a $60,000 SUV, for example, can claim the remaining $35,000 over six years.
No such luck for small-business owners who buy cars weighing less than 3 tons.
That's right. If you buy an enormous gas guzzling SUV, you can write off anywhere from $75,000 to $25,000. If you buy a hybrid, you can get a tax credit of up to $3,500.
And, I know, a tax credit is better than a deduction. But not if your deduction is seventy five thousand dollars.
In 2003, generous incentives to lavishly waste gasoline. In 2005, a piddly little incentive to buy fuel efficient automobiles. In 2006, still not one single new refinery built.
That means in the five years since Bush first addressed high gas prices, the Federal government, your government, has had a net negative effect on the price you pay at the pump.
Without any meaningful resistance from Democrats.
That means, while your disposable income has been shrinking for five long years, Bush has done nothing. He's done worse than nothing. He's compounded the problem. For five years.
There was absolutely no reason why the Republican party could not have done anything they wanted with regard to energy.
And they did nothing.
Well, that's not quite true. The Gee Oh Pee Congress and White House passed a bill cutting taxes on the richest 1% of Americans which was so generous that it turned a $230 billion a year surplus into a $400 billion a year deficit. And why did they do that?
To help ease your pain at the pump:
THE PRESIDENT: ...but the best way to make sure that people are able to deal with high energy prices is to cut taxes, is to give people more of their own money so they can meet the bills, so they can meet the high energy prices…
What is say is I worry about the fact that hard-working people are paying high prices at the pump. It concerns me a lot. And, therefore, the Congress needs to cut taxes as quickly as possible, to give people money to be able to deal with this situation…
And in the energy plan I'm going to be discussing, you'll see some incentives for hybrid automobiles. But the quickest way to get money in people's pockets to deal with prices is tax relief…
But I want to remind the members of Congress, both Republican and Democrat, all of us are concerned about high energy prices and prices at the gas pump being too high. Let's get the tax relief done and do it quickly…
I'll look at all options. But the clearest way to get things done quickly is tax relief…
The quickest way to help people with their energy bills is tax relief. That is the quickest, surest way to do so…
If anybody thinks they've got a good idea, I'll listen. But, for certain, what needs to happen is additional refining capacity, as well as tax relief…
To anybody who wants to figure out how to help the consumers, pass the tax relief package as quickly as possible…
…the right thing to do is to have proposed a tax relief package that is an integral part of a fiscal policy that makes sense.
I proposed the plan. I campaigned on the plan. Many of you, the truth be known here, didn't actually think it was going to happen. Now there's a budget in place, $1.25 trillion of tax relief…
He got his tax "relief"--well, it wasn't so much tax "relief" as tax deferral. After all, Bush and the Gee Oh Pee Congress added about two trillion dollars of debt to what average Americans owe. Plus interest.
We'll have to pay that money back. Plus interest. Possibly at a time when skyrocketing gas prices have caused massive inflation and our disposable incomes to disappear. I'm sure we'll be really happy, say, in ten years or so, to pay half our incomes or more for the American glory and plenty that was the Bush years.
But, beyond that, he got his tax "relief", and then some. Five years ago.
How you feeling at the pump? Better? Or worse?
Tax "relief" wasn't intended to help our energy problems. And it didn't. So that was a huge lie. And, despite an energy crisis which was apparent in 2001, the Bush administration has done nothing for five years.
This is just one more example of something which is very soon going to become horrifically clear to nearly all Americans: for the last six years, we've had no government. We haven't even had bad government--it seems like it. But we haven't.
Bad government, at this point, would be a fucking blessing.
We've had no government.
When these awful eight years under Bush are finally done, we're going to find out we had no clue how bad we actually had it. We're going to find a gubment that's busted, broken, disorganized and disfunctional.
We're going to find that nearly every federal agency is beyond repair. And that the debt for fixing what Bush ripped apart is now beyond what we can afford.
You want to know what kind of man did this to us, a nation of good people?
Q Mr. President, you would not equate the baby that was killed in retaliatory Israeli fire in the Gaza Strip with a 13- and 14-year old Jewish boys, one of them a U.S. citizen, who were tied up, beaten to death and mutilated near Tekoa, would you?
THE PRESIDENT: I was kind of smiling, it sounded kind of like an editorial.
A sociopath who kind of smiles when he gets a question about 13 year old boys being mutilated.
But he's concerned about you.
It's a nightmare.
Though, on the other hand, it might get out the libertarian and anarchist vote.
So there's that.
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