Is a Carbon Tax Inevitable for the US?
By Marin Katusa, Casey Research
While many are aware that President Obama plans to increase taxes on the wealthy, few anticipated the swift introduction of a carbon tax. A victory for Romney would have bolstered coal producers in the United States, but with his defeat, the outlook for coal appears bleak, at least in the short term. The major beneficiary of this political shift? Natural gas.
Interestingly, Exxon Mobil Corp (XOM) is now in support of Obama’s push for a carbon tax.
Why would Exxon and other energy giants advocate for such a tax?
The answer is straightforward: profitability.
Exxon has been strategically acquiring unconventional natural gas companies in North America, including a recent purchase of Canadian firm Celtic Exploration for over C$2.5 billion. Not to mention, a few years back, Exxon acquired XTO Energy for more than US$30 billion. Continue reading
Searching for quintessential American ideals can feel as futile as seeking consistency within the intricacies of the IRS tax code—both seem almost nonexistent. The heartfelt beliefs of one American can vastly differ from those of another.
For some, inspiration may arise from spiritual journeys, while others find joy in college football games. Yet there are those who yearn to break free from the suffocating conventions that burden them.
Mainstream narratives often depict a simplified version of our national struggle. Reporting tends to emerge from the viewpoint that the two-party system effectively suppresses divergent ideas. We’re often presented with a Marxist narrative portraying the affluent as villains exploiting the deserving poor. Even more disheartening, we’re led to believe that figures like Ben Bernanke possess a firm grasp on the situation.
This ongoing rhetoric starkly contrasts with the America we encounter daily, where the overwhelming presence of politically correct language and nonsensical news reporting feels both offensive and intolerable. Continue reading
“If we right away say 98 percent of Americans are not going to see their taxes go up – 97 percent of small businesses are not going to see their taxes go up,” said President Obama on Wednesday. “If we facilitate this, we’re actually tackling half of the fiscal cliff.”
Are we really doing that? Just like that?
While it’s true that there have been worse presidents and possibly even less intelligent ones, can anyone recall a president so unintentionally humorous?
Not in recent memory, if ever, to our knowledge.
The critical aspect regarding the fiscal cliff that President Obama neglects to address is that this initial debate serves merely as a precursor. The ensuing plunge into the abyss promises to be long and painful, and is unavoidable.
Austerity measures, manifested as higher taxes and spending reductions, are on the horizon. These changes will either be enacted willingly through government action or compelled by market forces. Given Congress’s demonstrated lack of comprehension regarding the issue, it’s likely that market forces will end up dictating necessary reforms for the nation’s finances. Continue reading
The contradictions inherent in government finance are both startling and absurd. Opposing forces are clashing, leading to consequences that leave scarcely anyone unaffected. To encapsulate the situation, we see the comforting illusion of prosperity through public expenditure colliding with the unforgiving truth of arithmetic.
The climax of this conflict, with all its harsh certainties, lies just ahead. Once we reach the tipping point, chaos and disorder will ensue. This uncomfortable reality is the predicament faced by many in Western nations today.
“Beauty is the first test: there is no permanent place in this world for ugly mathematics,” wrote British number theorist Godfrey Hardy in 1941. It’s unlikely he envisioned a fiat currency system where government borrows money created by the central bank to fund initiatives the economy cannot sustain.
If Hardy could have peered at the immense chasm between government revenues and obligations in 2012, he might have concluded that the Treasury is engaged in a serious case of ugly mathematics. Continue reading
