Smart. Sharp. Funny. Fearless.
Thursday, October 27, 2016

Facebook, the social media juggernaut, is worth over $100 billion — and today is just the first day of its presence on the public stock market. Can they keep up the momentum? And can they rely on the protection of their powerful allies in D.C.? Meet the men and women charged with hacking Washington on behalf of CEO Mark Zuckerberg.

Click here for reuse options!
Copyright 2012 The National Memo
  • ObozoMustGo

    Looks like crony capitalism is alive and well in the DemocRATic party!

    • Hi Bozo nice to have you back. Of course the GOP never had any dealing with crony capitalism!! Just look at the oil company susbsides. Also your capitlaizing “RAT” is very sophmoric at best. Try for something original or didn’t they teach you that at Liberty College?

      • ObozoMustGo

        Hi Bill! For the record (for the 33rd time) for all of you useful idiots out there that buy the rhetoric of “oil subsidies” here is an article written by Randall Hoven that explains the facts behind the lies that stir you morons so much:

        Everyone wants to end subsidies to oil companies, from President Obama to John Boehner and Paul Ryan. My question was “What subsidies?” Remarkably enough, CNN Money provided the answer.

        It turns out that they are all tax “breaks.” I even hesitate to call them “breaks” because some of them amount to little more than Congress defining accounting terms such as “capital equipment.” And the total amount of earnings not collected in taxes (which liberals define as a “subsidy”) is about $4 billion per year. Here is how that breaks down.

        Domestic manufacturing tax deduction — $1.7 B. This is a tax deduction given to every manufacturer in the US. Per CNN, it was “designed to keep factories in the United States.” If that deduction were eliminated for oil companies only, it would mean singling out oil companies from all other manufacturers.

        Percentage depletion allowance — $1 B. Any industry can write down a portion of the cost of its capital equipment as part of the cost of doing business. Right now, oil in the ground is treated as capital equipment. Again, this “subsidy” amounts to how the cost of doing business is defined. All companies get it, not just oil companies.

        Foreign tax credit — $850 million. Companies get credit for taxes they pay to other countries. All companies get this “subsidy,” not just oil companies. Should a company pay tax on tax? Should only oil companies pay tax on tax?

        Intangible drilling costs — $780 million. According to CNN, “[a]ll industries get to write off the costs of doing business, but they must take it over the life of an investment. The oil industry gets to take the drilling credit in the first year.” Among these four tax “breaks,” this smallest one was the only one that treated oil companies differently.

        The above tax “breaks” explain how much tax revenue is not collected from all oil companies. How much is collected?

        Exxon recently released its first quarter results for 2011. The number grabbing the headlines was Exxon’s profit: $10.65 billion in a single quarter. The number not given quite as much exposure was the taxes it paid in that same quarter: $8 billion, or 42% of income before taxes.

        And what does Exxon do with all that money it has left after paying $8 B in taxes? It put $7.8 billion into capital and exploration, as part of its plans “to invest between $33 billion and $37 billion per year over the next five years to develop new energy supplies.”

        In any other industry, that would be called “research and development.” Exxon is plowing 73% of its after-tax profits back into R&D. Who would be better at spending $4 billion of energy companies’ earnings in an attempt to provide our energy in the future: the energy companies or Obama’s energy czar?

        Do you know what oil company does get US subsidies, and not just tax “breaks”? Petrobras, Brazil’s state-owned oil company. According to the Wall Street Journal,

        The U.S. is going to lend billions of dollars to Brazil’s state-owned oil company, Petrobras, to finance exploration of the huge offshore discovery in Brazil’s Tupi oil field in the Santos Basin near Rio de Janeiro. Brazil’s planning minister confirmed that White House National Security Adviser James Jones met this month [August 2009] with Brazilian officials to talk about the loan.

        Just to re-cap a few pertinent features of these “subsidies” to oil companies that Obama wants to cut.

        •They are all tax “breaks,” or earnings that oil companies get to keep, not money paid out from the US Treasury.
        •The amount of earnings not collected in taxes is about $4.3 billion per year — about 0.2% of this year’s deficit and enough to fund about 10 hours of current US government spending.
        •A full $3.55 billion of that amount (82%) is due to the way taxes are treated for all industries or manufacturers. To change these tax laws only for oil companies would require singling them out among all industries for special mistreatment. (I’m not a lawyer, but that sounds like a bill of attainder to me, something our Constitution forbids.)
        •The only tax in which the oil industry seems to get special treatment compared to other industries is intangible drilling costs. The amount of that subsidy? That would be $0.78 billion per year — enough to fund less than two hours of federal spending in 2011, and not even half the amount we are lending a foreign-owned and state-owned oil company for drilling offshore Brazil.
        •Oil companies already pay tax rates of 40-50% of income. For one company, Exxon, in one quarter of one year, that amount was over $8 billion, or almost double the so-called tax “subsidy” for all oil companies for an entire year.

        If you think oil companies enjoy some special privilege because of the money they throw around Washington, DC, consider that the Oil & Gas industry ranked only 19th in the amount of money contributed to politicians in the 2008 election cycle: $17.7 million. Who was number one? Lawyers, who contributed $126.9 million, or over seven times as much as the Oil & Gas industry. The Education lobby gave $37.4 million, more than twice as much as Oil & Gas.

        You might not realize it, but private oil companies don’t own much oil. Most oil in the ground, in fact 87% of the world’s supply, is owned by state-owned companies, and most of that by OPEC countries and Russia. Exxon, for example, owns only 0.68% of worldwide oil reserves. Venezuela owns 7.34%, more than 10 times as much as Exxon. What Exxon does is explore, drill, transport, refine, and distribute. It makes its money by doing things, not by sitting on capital.

        According to the DOE’s Energy Information Administration, every time you fill up your gas tank, more of your money goes to taxes than goes to refining costs and profits combined.

        Having said all that, go ahead and get rid of that special treatment of intangible drilling costs. Make oil companies write them down over the life of their investments, not just one year. Increase corporate taxes in the US, where corporate tax rates are already highest in the world. Collect enough money to fund the federal government for two hours.

        And of course, tell your constituents you don’t kowtow to those big, bad oil companies. Unless they’re owned by Brazil.


        Have a nice day!

        • kudos

          • ObozoMustGo

            Thanks Bruce. Funny, but if you look at the reply of jonerkk… facts certainly arent going to sway his opinion! hehehehehehehehehehehe

            Have a nice day!

          • jonerikkingstad

            Obviously, you’re onto something here Obozo. Here’s another hoax to investigate. These “scientists” have been telling us now for some time and have a lot of people believing that the “earth revolves around the sun”. It’s a fact is it not that the sun goes “up” in the morning and down in the evening? Now these “scientists” have a “theory” they claim proves otherwise. You clearly know better than these “scientists.” Is that “theory” a hoax too? Don’t you think that must be some evil commie plot to trick folks into spending their money on “space programs” and such garbage?

          • ObozoMustGo

            Huh? What part of simpleath don’t you get?

          • ObozoMustGo

            Browny is right!

        • jonerikkingstad

          It would take more than an article written by some unknown hack with CNN, part of the mighty Wurlizter of the right, to convince me tha ending these “tax breaks” or whatever you want to call them is a bad idea. Of course oil companies don’t “own” much oil. They sell it faster than they buy it through arbitrage with currency and other forms of financial manipulation.
          Exxon is one of these mighty despoilers of the earth which uses its profits to buy politicians and sell propaganda to convince people that its business is one of the main contributors to climate change. In this, they are like the tobacco manufacturers using the profits from selling cigarettes to buy politicians not to clamp down on cigarettes as a cause of cancer. What the country needs more than repeal of “tax beaks” is a carbon tax that would fund renewable energy research and development and production. We’ve passed peak oil. It’s all downhill from here until we’ve passed the tipping point for climate change which may already have happened. Now the industry is down to ruining the groundwater aquifers and drinking water to squeeze more natural gas out of the earth. But sure, go ahead. Keep reading what a great company Exxon is and how much they’re doing for the human race. Your children and grandchilden will most certainly be grateful for the planet this company has left them.

          • ObozoMustGo

            It’s amazing to me just how stupid you and the rest of the leftist nutjobs on this site can be. Just when I think you’ve hit rock bottom, you get a shovel and begin digging again!

            Essentially, joner, what you have just said above is that you dont care about the facts, their NOT changing your opinion! Bwaaaahahahahahahahahah!! ROFLMAO

            You still believe the global warming hoax, dont you? What a fool. Here are some more facts for you to ignore and NOT let sway your opinion. Why should a good set of facts get in the way of great fantasy?

            Here is a repost of a post I did a little while ago:
            The so-called “climate deniers” are winning because the rest of us have figured out that the whole darned thing is a freakin hoax being perpetrated by leftists to control private property and to redistribute wealth. That’s all it is. Dont believe me? Lets run some numbers and do a little lesson here.

            1) What causes Global Warming? ——> Greenhouse gases (GHG)
            2) What are Greenhouse gases? ——–> Water vapour, carbon dioxide, methane, nitrous oxide, and ozone. Water is the vast majority of these
            3) How is CO2 measured in the atmosphere? ——-> It’s measured in parts per million (PPM)
            4) How much CO2 was there pre-industrial age? —> 280 PPM
            5) How much CO2 is there today?—> 390 PPM
            6) The difference is what? —-> 110 PPM

            Now, assuming that all 110 Parts Per Million were man made (which they are not), we are talking about the effect being:


            Did you read that correctly? That’s right. The whole argument is over ELEVEN ONE HUNDREDTHS OF ONE PERCENT of the atmosphere. It is incomprehensible that the most infinitecimal change could have any real affect. This is especially true when we consider the FACT that the earth’s climate has NEVER been static either before mankind or after mankind showed up. And CO2 levels have NEVER been static. The earth is constantly changing, sometimes quickly and sometimes slowly, but it is ALWAYS changing. And mankind has absolutely NO effect on the planet! NONE!!!
            Sorry to have awaken you from your zombie coma and shined some light of truth on you, but someone has to do it, joner.

            I am a raft of truth in the leftist sea of insanity that is The Memo.

            Have a nice day!

          • 110 ppm doesn’t seem like a lot until you consider that ricin will kill a human at 4 ppm concentration in human blood.

          • ObozoMustGo

            Keep telling yourself that Roger. Then have another hit on your crack pipe.

          • bozo: typical republican. can’t win on the merits of their argument, so they resort to name calling and other distractions.

          • ObozoMustGo

            Keep the faith Roger. It’s the only way to make yourself feel better and sell the lie.

    • labrown69

      Crony capitalism is alive and well in both parties and therein lies the problem. To call it “free markets” in an attempt to avoid regulation when banks get to borrow our money at 0% interest and instead of being in the loan business they make it impossible to get a loan and head for the casino games with our money. If they win they keep the massive gambling booty and if they lose WE pay for it. The Republicans want to reverse even the modest reforms in Dodd-Frank (a poorly named bill) and oppose the Volcker Rule proving that they are even worse than the Dems. The 26 billion dollar settlement between the banks and the states was supposed to go to relieve homeowners who were victims of fraud. Instead Obama has participated in yet another fraud as that money is being diverted to education and other things but not compensating the actual victims. It could have been conditioned but yet again, criminal Obama let criminal Geithtner and the others cut yet another deal that cut “we the people” out. When it all comes down, I will probably vote for Obama but if he gets clobbered in November he will have earned a good thrashing. Part of me will enjoy seeing him defeated as revenge for the gross betrayal that his administration has been.

      • ObozoMustGo

        labrown… nice to see you again. I hope you are well…. you are 100% correct! Crony capitalism has become the norm for our political system on BOTH sides of the aisle. It begins with the complexity of the tax code and the outsourcing of our currency to a private bank called the Federal Reserve. I have stated that many times before on this site. I mentioned the dems only because I like prodding the leftist nutjob hornets nest around here, and, unlike you, the vast majority of the readers on here are blind supporters of Obozo and the dems. I’ve said it many times before and have never been challenged on my assessment that most of the people around here would vote for Obozo even if he were caught on tape doing lewd things to an underage person. The zombie factor runs very high around The Memo!

        And Obozo is going to get thrashed in November. He knows it. He’s lost the middle and most of the undecided vote already. That’s why he’s moved to the hard left. His only hope is to energize the hard left base. It’s why he’s suddenly changed his mind on gay marriage when 65% of America is against it. If you are an objective observer, you see this as well.

        Thanks for your input, labrown.

        Have a nice day!

        • labrown69

          Obozo – I appreciate the kind words and nice to see you too. Yea, I have to marvel at Obama not seeming to realize that he has lost his base. You can only get so much mileage out of voting against the insanity of the Santorum constituents who like it when he says he “wants to puke at the thought of separation of church and state” etc and then a president actually has to do something. Obama has failed to deliver. There are those who will live up to the right wing stereotype of thinking Obama is “The Messiah” and justify his every failing with crap about “obstructionist Republicans” but the reality is “no public option”, Geithner, Summers, Holder and a litany of scum bags, a questionable middle east policy, not a single indictment after the most massive systemic fraud in the history of the world and a lot of love between Obama and Wall St. The hard right will always hate Obama, they did before and they will in the future but he has abandoned those of us who voted for him and without his base, our “great Black hope” will probably go down in history as an even more pernicious Jimmy Carter, but with a better tan.

          • ObozoMustGo

            Correct again, my friend. Correct again!

            Have a great weekend, Browny!

        • I agree that cronism is alive and well in all of our politics. I do not agee that PRESIDENT OBAMA will be defeated by Mr. Romney.

          The GOP and Mr. Romney do not have a plan for this country that includes you as anything other than fuel for the profit machine. Their plan would:
          1. Add 282 billlion to the federal defecit..
          2. Gut social welfare programs that the most vulnerable; our seniors and children, depend on.
          3. Add one trillion to our already bloated defense spending. This money would not go to help the returning service men and woman. It would be spent on weapons systems
          4. Put a higher tax burden on the working and cut the tax burden on the most wealthy AGAIN.
          5. They want a small government one just the right size to fit in your bedroom, doctor’s office, and most other places they do not belong. One too small to regulate Wall Street, Fossil Fuel industry, and any thing else that poses a danger to our economy and our enviroment.

          Anyone who votes for a Tea Party Republican who does not have millions of dollars has just voted against their own best intrest. They are a party of NO. No compromise, no compassion.

          • ObozoMustGo

            Take another drink of the Obozo Kool-Aide, Joan. You must find it refreshing after working your bong over for a while!

            Have a nice day!

            PS> Adding $282B to the deficit is a far cry lower than the $1.5T that Obozo adds every year!

  • R oberts
    A lito
    T homas
    S calia

  • It is a JOY to see the pervasive disrespect for the ANGLO-JUDAIC IVY-LEAGUE CORPORATOCRACY which controls our country, and dresses in the polyester fabric of our degraded constitution. The hate, bitterness, hopelessness, and rage will mount until something REAL can happen.