CNN’s Wolf Blitzer pressed McCain campaign adviser Carly Fiorina about oil companies "awash in record profits" on Tuesday’s "The Situation Room." The CNN host used ExxonMobil as an example five different times in his questioning. "...ExxonMobil has got these billions and billions of dollars in record profits. They can afford to not necessarily get additional tax cuts."
After Fiorina outlined McCain’s proposal to lower the federal business tax rate at the beginning of the segment, which began 14 minutes into the 5 pm Eastern hour of the CNN program, Blitzer took a persistent stance in asking if the reduction in taxes included "big oil." First, the CNN host asked, "Would that reduction of the tax rate also include, as Obama says, ExxonMobil and the other big oil companies, who are awash in record profits?"
Once Fiorina answered by making the point that Obama’s proposal "to levy a windfall profits tax against oil companies will only do two things for the American consumer -- limit supply and raise prices, neither of which is very good," Blitzer rephrased his original question: "So, in other words, is Obama right when he says, under a McCain administration, ExxonMobil would get additional tax breaks?"
When Fiorina stuck to her point that McCain wanted to "lower the tax rate on all businesses, so that it is more in their interests to put jobs here in the U.S.," Blitzer continued to focus on "big oil:" "But no exemption for big oil and the -- no exemption for big oil then?" After the McCain adviser said there would be no exemption and tried to defend her answer, Blitzer continued to stress his point:
BLITZER: I understand the need to cut your taxes if you want to compete globally, which is the point you're trying to make but...
FIORINA: Well, but Barack Obama doesn't understand that.
BLITZER: I'm sure he understands that. But he also says ExxonMobil has got these billions and billions of dollars in record profits. They can afford to not necessarily get additional tax cuts.
FIORINA: But that isn't what Barack Obama's proposing. What Barack Obama is proposing is to tax the profits of oil companies. That's a different proposal. And taxing the profits of oil companies would do two things -- it would raise the price of oil and it would lower the supply. So it's not a good proposal for the American consumer....
This isn’t the first time the CNN host has used this line of argument and questioning towards Fiorina on the subject of taxes and oil companies. About six weeks earlier, on May 1, Blitzer asked, "But what's wrong with a windfall profit tax? Exxon Mobil today announcing their first quarter profits almost $11 billion. They're raking it in right now.... What do you say? Why not do what Hillary Clinton says, tax them a little bit more? They can certainly afford it better than working-class people...."
Later, Blitzer asked Fiorina about another point of Obama’s, that the billions of dollars being spent on the Iraq war could be "invested in our roads and schools and bridges and started to rebuild America." Blitzer’s point: "You could do a lot of money with $12 billion -- you can do a lot of things with $12 billion a month."
After Fiorina responded that "there's no question that the Iraq war is costing a lot of money" and that "Barack Obama has proposed no plan for how he is going to get out of Iraq successfully without creating genocide," Blitzer followed up by asking, "The question is how much longer will the American taxpayers have to shell out $12 billion a month or $150 billion dollars a year or whatever it costs?"
—Matthew Balan is a news analyst at the Media Research Center.
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Comments Policy
I don't think Americans will tolerate much more "Talk" on Gas
June 10, 2008 - 22:07 ET by JayTeeThe Talking head talking points, are not quite being heard. The Screams from Angry Americans is drowning out any of Blitzoids "points".
Congress is NOT smarter than a 5th Grader, and the Show is Playing on the floor of the Senate.
Next Question for the 5th Grade Congress ....
Will Government Health care work better than the Government's Cheap Energy Solution ?
The Republican Revolution will not be Televised
Great point, will the
June 11, 2008 - 05:03 ET by USA4freedomGreat point, will the government program to “keep us from depending on foreign oil” work just as well as the government health program??
Lets see, I think I remember in my past a cardigan sweater and turning the thermostat down.. Yea that will get it done..
Every week the spineless Republicans should put up for vote: Drilling in Alaska.. Make theDemocrats vote every week against getting our own oil.
Ronald Reagan, 1962: I did not leave the Democratic party, the party left me.
Insert: your name, 2008, and the Republican party.
Romney / Jendil 2012 (if,we survive)
"who are awash in record
June 10, 2008 - 22:08 ET by Clear thinker"who are awash in record profits"
Because the world demand is higher than ever.
You sell more, you make more $$$.
What part of this equation do liberals not understand?
"Abstain from McCain"
The "you make more"
June 11, 2008 - 05:30 ET by motherbeltThe "you make more" part.
What would Wolf of done
June 10, 2008 - 22:14 ET by bigtimerWhat would Wolf of done without Desert Storm....where would he be now?
"Never murder your opponent when he is committing suicide." ~ W. Wilson
After Fiorina responded
June 10, 2008 - 22:16 ET by MidAmericaAfter Fiorina responded that "there's no question that the Iraq war is costing a lot of money" and that "Barack Obama has proposed no plan for how he is going to get out of Iraq successfully without creating genocide," Blitzer followed up by asking, "The question is how much longer will the American taxpayers have to shell out $12 billion a month or $150 billion dollars a year or whatever it costs?"
But.... the dilema now is if we pull out of Iraq too quickly destabilizing the Middle East a circumstance that could cause oil prices to reach unimaginable heights the cost of current expenditures in Iraq would seem a bargain.
"Barack Obama has proposed
June 11, 2008 - 05:31 ET by motherbelt"Barack Obama has proposed no plan for how he is going to get out of Iraq successfully without creating genocide,"
Do the words "Peace with honor" ring a bell?
No problemo! Don't forget
June 11, 2008 - 05:54 ET by Jack BauerNo problemo! Don't forget he can call on his experieence as a community organizer
Pukes
June 10, 2008 - 22:17 ET by NortoI am afraid the public buys this garbage. Schumer was sickening. How can people believe this?
AWASH in profits, because the government will not let them use the $$$ for exploration or refining.
Tom Allen(D-ME) will go against Susan Collins and I am predicting he will beat her, because of his Portland ties. This Country is in serious trouble with this election. Chaos is not strong enough, anarchy is very close to reality.
Allen vs Collins is no big
June 10, 2008 - 22:30 ET by NL207Allen vs Collins is no big deal. Just trading one liberal for another.
NL... Couldn't of said it
June 10, 2008 - 22:44 ET by bigtimerNL...
Couldn't of said it better, I'd rather have the liberal on the left side of the aisle.
"Never murder your opponent when he is committing suicide." ~ W. Wilson
Once upon a time making
June 10, 2008 - 22:21 ET by ReaverOnce upon a time making profits, even record profits, meant you were successful. Now it means you’re evil. May I suggest Ms. Fiorina try the following reply on Wolffie. ExxonMobil worked very hard for their profits, they earned them fairly, and they played by the rules and broke no laws. What right does the government have to take them away?
Reaver... ...Bingo! "Nev
June 10, 2008 - 22:27 ET by bigtimerReaver...
...Bingo!
"Never murder your opponent when he is committing suicide." ~ W. Wilson
Exxon's Earnings: No Apology Necessary
June 11, 2008 - 00:32 ET by PopularTechExxon's Earnings: No Apology Necessary (Cato Institute)
"If we simply divide Exxon Mobil's net income by sales, we discover that the company reported a 10.7% profit margin in the quarter. That's probably a bit above the U.S. industrial average, but it is hardly remarkable.
For instance, the nation's moist prominent critic of "oil profiteering" - Fox News personality Bill O'Reilly — works for a company (News Corp.) that reported a 10.2% profit in the fourth quarter.
If you're after big earners, check out Yahoo (a 45.5% profit margin), Citigroup (33.4%), Intel (24%) or Apple (22.7%)."
The Anti 'Man-Made' Global Warming Resource
Nothing like a little
June 11, 2008 - 03:16 ET by SchnikeysNothing like a little perspective!
------------------------------------------------------------
"It could be the answer to our age-old, philosophical question, 'Why are we here?' PLASTIC!"
That article is from 2006.
June 11, 2008 - 08:12 ET by ckc1227That article is from 2006. I think their profit margin has come down since then.
This is my favorite part of the article:
Down with Big Technology!
June 11, 2008 - 08:37 ET by CortillaenDown with Big Technology! The evil Computer/Information Complex is stealing our money! </sarc>
www.rhjunior.com Great comics with a hefty dose of Christian and anti-nutjob goodness.
"With your mind as high as Mt. Fuji you can see all things clearly. And you can see all the forces that shape events; not just the things near to you." -Miyamoto Musashi
Blitzer does not know ice cream from the cone
June 11, 2008 - 00:29 ET by wdhorningBlitzer fails to separate the oil companies from OPEC. While there are some small other factors, currently, 90% of the price of gas at the pump is driven by what OPEC charges for oil, that is, how much it costs per barrel. In short, it is not oil companies, refineries, distributors or dealers that are bilking the public, but OPEC's greed.
Blitzer's failure to distinguish between OPEC and go after oil companies shows just how wrong his analysis is. He fails to see that oil companies, refineries, distributros and dealers keep their prices as low as practical due to competition. It is OPEC that pushes prices very high by non-conpetitive, price-fixing (called racketeering in this country). It can do this because it is a virtual monopoly. (Maybe Blitzer should play the game of "Monopoly" more often to get a better understanding of OPEC.)
Furthermore, Blitzer's idea of reducing any tax credits to oil companies can mean only one thing, they have to make up this money somewhere else. So where will they get the money? ANS: from you and I at the pump. Also, future oil recovery could be effected, driving prices even higher. Thank you Wolf Blitzer!
I really do not know how people listen to Blitzer. It has to do with their low IQ, I guess.
And as for OPEC, by their act of "racketeering" they may be causing a few "ouches" among the middle and upper class, but they are severely effecting the poor of the world, reducing their available cash for the essentials, such as food, clothing and shelter, as well as indirectly causing the prices of these essentials to rise. You wonder how OPEC ministers sleep at night knowing how much harm they do to the poor people of the world. You wonder how they plan to answer to God/Allah.
Also, I wonder how Blitzer sleeps nights, since it seems to me that his ideas are designed to destroy America, IMHO.
Blitzer continues to
June 11, 2008 - 03:00 ET by Andrew H.Blitzer continues to demonstrate the job of news reader requires no particular level of education or intelligence.
Liberalism is a convenient lie.
Wd, spot on. They cant be
June 11, 2008 - 05:09 ET by USA4freedomWd,
spot on.
They cant be that dumb, they truly are the Dems talking points.
Ronald Reagan, 1962: I did not leave the Democratic party, the party left me.
Insert: your name, 2008, and the Republican party.
Romney / Jendil 2012 (if,we survive)
I got it now.
June 11, 2008 - 00:47 ET by JWFWe should never go to war again because war cost money.
France stayed out of Iraq went the coalition of countries went in. Look how well they are doing with all the money they saved. Lets be just like France!
Rocord Profits? Does anyone else know about this?
June 11, 2008 - 02:21 ET by JWFOh my Gawd! They are a publicly traded company listed on the New York Stock Exchange. I am going to go out and buy all the Exxon stock I can right now! Come on NB's, lets get in on this while the gettings good!
I am going to research this before the exchange opens tomorrow. I will be right back...
Ok, I am back. Uh, guys, this is a big company. Really big. Like the world's second biggest company. Mega hugely ginormous. Their profit was 40 billion dollars but they have like 5 billion shares out there. That comes out to like around 8 bucks a share. And each share costs like 87 dollars. They have a profit margin of like 10%. That means that 90% of the money they make is spent and goes right back out the door. Some money gusher, they spend 10 times more than they keep.
Something ain't right. This does not scream money raking obscene profit making uber buy buy buy to me. If this is making obscenely profane almost porn type profits, it sure ain't showing up in the stock.
"Exxon Mobil today
June 11, 2008 - 08:00 ET by ckc1227"Exxon Mobil today announcing their first quarter profits almost $11 billion. They're raking it in right now...."
So is the government. ExxonMobil paid $8.9 billion in taxes in the first quarter. Since I'm not the brightest star in the sky, can someone...anyone....explain to me how taking more money from the oil companies will lower the price, increase exploration, and produce one extra drop of oil and gas?
Having said that, I'm ok with them revoking the tax incentives. It's only $18 billion over 10 years, divided between 5 companies. That's under $400 million a year per company, assuming it's divided equally between them. Now, don't get me wrong, that's still a lot of money, but taking that away will have little affect on the price of gas.
WINDFALL PROFIT TAX
June 11, 2008 - 08:06 ET by billbThis tax would be more appropriate if it were levied on the TV networks that have profitted so handsomely from this extended campaign season.
SAY IT! - Corporate taxes are paid by their customers
June 11, 2008 - 09:38 ET by pilsenerUntil the "guests" of Wolf, et.al., are willing to explain in simple terms that corporations pass along all costs, including taxes, in the prices of their products, and that the consumer would pay the windfall profits taxes on oil companies, then the talking-heads will keep repeating Democratic talking points.
Unfortunately, I'm not sure McCain and his campaign even recognize that fact.
Good Grief Wolf!
June 11, 2008 - 11:31 ET by mytwocentsOk - profits are high. That's what happens when demand is high and supply is low. Ever try to buy a new car that is in short supply and try to get the car dealer to haggle with you? It doesn't happen. There is a total of 85 million barrels of oil per day available worldwide. There is an 86.4 million barrel per day demand. The US is using about 400,000 barrels less per day than they did last year, but China is using about 500,000 more per day. This isn't rocket science.