Eye of Newt (and John Sharp, too)

This was forwarded to me Monday night…

Although my Winning the Future message has always been directed at all Americans, whether they consider themselves Republicans, Democrats, or independents, today I am directing my message specifically to Democrats. And my message is this:
The American people have spoken. Are your leaders listening?
Over 1.1 Million Americans Call on Congress to “Drill Here, Drill Now”
We really had no idea, just 35 days ago when we first posted the “Drill Here, Drill Now, Pay Less” petition here, that we would provide the spark that has ignited a fire among frustrated, struggling Americans.

So, Newt, what you’re saying is that .03% of the American public is as dumb as you are when it comes to energy supply and energy security (two very separate issues)? I’ll buy that. Hell, it appears you’ve even managed to suck that assweevil John Sharp into your stupidity

Secondly, cut the capital gains tax from 15 percent to 7.5 percent for investments in new domestic energy. History has shown that capital gains cuts produce more revenue for government, not less. These two actions would unleash the economic power of America towards solving our energy crisis by allowing Americans to do what they do best … produce. This country has never conserved its way to greatness, but many times we have produced our way to greatness.

A couple of things here, John. First, cuts in cap gains ALWAYS normalize. See, it’s called ‘tax planning’ and people do it all the time. Fund managers, for example, will sell badly performing equities leading up to the end of the year, only to repurchase them in January. Why? Because they get to book a loss on the stock, which are then used to offset gains on other sales. Then they get to rebuy at, if they’re lucky, a slightly lower price than they got on the sale, covering their frictional costs. THE SAME THING APPLIES TO CAPITAL GAINS. If I’m sitting on a massive capital gain, and legislation changes the rate at a known date in the future to a lower rate than current, I’m going to put off selling that investment until the rate goes down. Then, I’m going to sell. That’s why it looks like tax cuts pay for themselves. As long as you don’t think too much about it, which John has evidently not done. Next he’ll be telling us that deficits don’t matter.
Now, on to conservation… we actually did that. In the 1980′s. Consumption went down dramatically as people started driving more energy efficient cars. That coupled with increased production led to oil at $10/bbl. However, the overwhelming factor was the drop in demand. That’s in process right now.
Look, I’m going to let y’all in on a little secret. Newt’s playing politics and quite stupidly as just about everyone knows that it’s a lie that there is enough oil on the continental shelf and in ANWR to satiate our demand for oil.

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