Tuesday, May 3, 2011

Cutting Oil Subsidies: Another Price Spike

It is important to be truly represented. You can only do this by voting and by communicating with your representative. This an email I sent my US Congressman, Vern Buchanan.

Re: President Obama's call to Remove Four Billion Dollars in Oil Industry Subsidies

Dear Representative Buchanan.

If the business expense tax incentives are removed from the American oil industry it will have the affect of raising the cost of energy and especially at the gas pump. Businesses always pass on their expenses to the consumer.

A better idea to influence a downward pressure on oil prices would be to update and improve a control on the futures market. Currently speculators risk up 5 to 15 percent in cash holdings up front to play the futures in oil. If that were changed at least 50 percent up front, it would throttle back the volatility of the market make it more stable. If the 50 percent rule were in place, oil would not be over $110.00 per barrel and regular gas at the pump would still be below $3.00 per gallon.

I drive 55 miles round trip to work each day and my vehicle gets around 17 miles per gallon. Since 2009, my cost in gasoline just to drive to work and back has more than doubled and dominates my family budget. I cannot buy a more efficient vehicle: at least this one is paid for.

Something needs to be done sooner rather than later. Reigning in the futures market, along with a push for domestic drilling, and removing the ethanol subsidies (another triple whammy in wasted tax dollars, higher gas prices & lower gas mileage) would help working Floridians and all Americans who need relief from the unreasonable inflationary effects of government's mishandling of America's energy needs.

Thank you for your attention to this matter.

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