Thread by @phillyrich1

1/ Enough is enough. Its time to take on the idea of "Fossil fuel subsidies."

Have you ever wondered what that really means? To me it sounds like tax breaks given to the oil and coal industries.

2/ I went and found the IMF paper being quoted by Rep. Omar. And guess what? There are TWO definitions of "subsidies." There are "pre-tax subsidies" and "post-tax subsidies."

You want to guess which one the left is using? Uh huh, the more extreme one.

Watch this...

3/ Pre-tax subsidies are basically: It cost a certain amount to produce the fossil fuel & the consumer pays less than that amount so that transaction is being subsidized.

The paper concludes that these “Producer subsidies are … relatively small.”

4/ So right there, the left's decades old meme that our Federal Government is under the control of and giving massive subsidies to the oil, gas and coal industries is shot to hell. As per the paper being quoted by Rep. Omar, those subsidies are "relatively small."

5/ So to make this sound like the fossil fuel industry is literally getting away with murder, there’s a second definition of subsidies: “Post-tax subsidies.”

Post-tax subsidies add in a huge new cost: Environmental and Social Costs.

6/ Post-tax subsidies is the methodology used by the IMF paper quoted by Rep Omar. But, as per the report itself, “…the international debate typically focuses on the narrower notion of pre-tax subsidies.”

To quickly summarize-->

7/ Pre-tax subsidies relate to the actually producer of the fuel & those subsidies are “relatively small.”

Post-tax subsidies are much greater & are essentially the amount the CONSUMER is being under charged. Post-tax subsidies do not go on the producer, but on the CONSUMER.

8/ By complaining about $649B in subsidies, Rep. Omar is saying that because of social and environmental justice, you and I have to pay $649B more in taxes, not that the evil oil, gas and coal companies have to pay more in taxes.

9/ The study goes on to actually say that because of changing fuel prices “Global pre-tax subsidies…declined substantially from 2012 to 2016” but also bc of fuel prices pre-tax subsidies “rose slightly” in 2017.

10/ I can go on and on about this study. But the bottom line is that the environmentalists have created a new definition for "subsidy" and are using this new definition as a political weapon.

11/ Here's Rolling Stone Magazine going nuts about the massive "subsidies": rollingstone.com/politics/polit…

You can link to the actually study from there.

FYI: The study uses the term "estimate" 99 times. 99!!!

/end