Oil and gasoline prices are extremely high, though no where near record highs. High energy prices have historically been and remain a drag on economic growth.
Brazil understands these two facts. By contrast, many Democrats in the U.S. apparently don’t, or don’t care.
As reported by Reuters, Brazilian President Dilma Rousseff intends to simplify and reduce taxes for electricity producers and distributors, as part of a strategy to reduce Brazil’s high business costs and stimulate its struggling economy. Brazil has the world’s third-highest power costs, and the President wants to give relief to consumers and companies in energy-intensive areas such as steel and petrochemicals.
By contrast, the Obama adminstration throws up one roadblock after another to domestic energy production. The President tied up the Keystone Pipeline, blocking access to millions of barrels of oil overtime. His administration continually pushes green energy plans that are more expensive and less reliable than conventional energy. In addition, these schemes fail to produce jobs and put our national security at risk. The President is placing drivers and passengers at risk by forcing car makers to put less safe cars on the road. The administration has also made it increasingly difficult to drill for oil or natural gas on public lands and off-shore. The Democratically controlled Senate has thus far stymied any efforts to reverse Obama’s anti-energy policies. In addition, the President and Democrats have long-called for increasing taxes on oil companies under the guise of “cutting subsidies.” The results would mean less, not more oil and gas production since the “subsidies,” are the tax credits and deductions that all businesses recieve for investment in new equipment and capital.
And now some states want to hop on the anti-energy bandwagon, as Vermont’s Democratic Governor was practically falling overhimself to be the first state to ban fracking — the single greatest development in energy technoloy probably the the last 20 years. Let’s here it for the luddites!
Sad when Brazil is a better place to invest (for energy companies at least) than the USA.