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Is Obama a Realist, Isolationist, Humanitarian Interventionist, or Drone-Dropping Hawk?

Mother Jones

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Since the end of the Cold War, foreign policy has become much more challenging. In a post-bipolar world where nonstate actors pose real threats and disrupters (good and bad) are everywhere, the issues are knottier and unforeseen developments often yield difficult options. In the aftermath of 9/11, George W. Bush chose not to come to terms with this fundamental change. Instead, he opted for a blunderbuss policy dominated by a misguided invasion of Iraq. President Barack Obama inherited a helluva cleanup job. And as he had handled the details—such as winding down the wars in Iraq and Afghanistan—he has had tried to articulate an overall strategy. His latest stab at this was the speech he delivered to West Point graduates this morning.

Early in the address, Obama noted, “you are the first class to graduate since 9/11 who may not be sent into combat in Iraq or Afghanistan.” The young men and women before him cheered. It was a poignant moment. Then Obama proceeded to outline a larger vision. He summed up his stance in these lines:

Since George Washington served as commander in chief, there have been those who warned against foreign entanglements that do not touch directly on our security or economic well-being. Today, according to self-described realists, conflicts in Syria or Ukraine or the Central African Republic are not ours to solve. Not surprisingly, after costly wars and continuing challenges at home, that view is shared by many Americans.

A different view, from interventionists on the left and right, says we ignore these conflicts at our own peril; that America’s willingness to apply force around the world is the ultimate safeguard against chaos, and America’s failure to act in the face of Syrian brutality or Russian provocations not only violates our conscience, but invites escalating aggression in the future.

Each side can point to history to support its claims. But I believe neither view fully speaks to the demands of this moment. It is absolutely true that in the 21st century, American isolationism is not an option. If nuclear materials are not secure, that could pose a danger in American cities. As the Syrian civil war spills across borders, the capacity of battle-hardened groups to come after us increases. Regional aggression that goes unchecked—in southern Ukraine, the South China Sea, or anywhere else in the world—will ultimately impact our allies, and could draw in our military.

Beyond these narrow rationales, I believe we have a real stake—an abiding self-interest—in making sure our children grow up in a world where schoolgirls are not kidnapped, where individuals aren’t slaughtered because of tribe or faith or political beliefs. I believe that a world of greater freedom and tolerance is not only a moral imperative—it also helps keep us safe.

But to say that we have an interest in pursuing peace and freedom beyond our borders is not to say that every problem has a military solution. Since World War II, some of our most costly mistakes came not from our restraint, but from our willingness to rush into military adventures—without thinking through the consequences, without building international support and legitimacy for our action, or leveling with the American people about the sacrifice required. Tough talk draws headlines, but war rarely conforms to slogans. As General Eisenhower, someone with hard-earned knowledge on this subject, said at this ceremony in 1947: “War is mankind’s most tragic and stupid folly; to seek or advise its deliberate provocation is a black crime against all men.”

This is not new. Obama chooses no specific camp. He does not truck with so-called realists and isolationists who do not want the United States to be involved with overseas conflicts that do not directly and immediately threaten the United States. Nor does he side with interventionists who call for US military engagement in trouble spots around the world. Cognizant of the costs of war (money, lives, and more), he does not want to overcommit the United States. Citing the costs of nonaction and the interconnectedness of today’s world, he does not want to remain on the global sidelines. He’s certainly no neocon eager to deploy US military resources overseas to intervene in Syria or to up the ante with Russia regarding Ukraine. (Obama announced he would boost efforts to help Jordan, Lebanon, Turkey, and Iraq, deal with refugees and cross-border terrorists from Syria, and “ramp up” support for elements of the Syrian opposition “who offer the best alternative to terrorists and a brutal dictator.” He said he would keep working with the IMF and allies to bolster Ukraine and its economy and isolate Russia.) But Obama did defend his use of drone strikes. He noted, “In taking direct action, we must uphold standards that reflect our values. That means taking strikes only when we face a continuing, imminent threat, and only where there is near certainty of no civilian casualties. For our actions should meet a simple test: We must not create more enemies than we take off the battlefield.” (Yet his administration has not always met this standard.)

For years, Obama has been trying to form and sell a balanced approach that justifies certain military interventions and limits others—while redefining national security interests to include climate change and other matters. That’s a tough task. The world is not a balanced place. It’s likely that Obama’s handling of foreign policy will continue to be judged on a case-by-case basis and less on the establishment of an integrated doctrine. Given the global challenges of this era, a grand plan may not be realistic.

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Is Obama a Realist, Isolationist, Humanitarian Interventionist, or Drone-Dropping Hawk?

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A Brief History of Big Tax Breaks for Oil Companies

Mother Jones

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Over the past century, the federal government has pumped more than $470 billion into the oil and gas industry in the form of generous, never-expiring tax breaks. How it all got started:

1916
The petroleum industry takes off as Americans’ love affair with the automobile begins. A new tax provision allows oil companies to write off dry holes as well as all “intangible drilling costs” in their first year of exploration. Over the next 15 years, oil and gas subsidies will average $1.9 billion a year in today’s dollars.

1926
Congress approves the “depletion allowance,” which lets oil producers deduct more than a quarter of their gross revenues. Texas Sen. Tom Connally, who sponsored the break, later admits, “We could have taken a 5 or 10 percent figure, but we grabbed 27.5 percent because we were not only hogs but the odd figure made it appear as though it was scientifically arrived at.”

1937
Treasury Secretary Henry Morgenthau calls the depletion allowance “perhaps the most glaring loophole” in the tax code. President Franklin D. Roosevelt urges Congress to close it and other tax-evasion methods “so widespread and so amazing, both in their boldness and their ingenuity, that further action without delay seems imperative.”

1947
Natural gas drillers in Kansas first experiment with hydraulic fracturing, or fracking, but the technology won’t be widely used until the federal government backs its development in the 1970s.

1950
President Harry S. Truman unsuccessfully prods Congress to end the depletion allowance.

1957
Asked about the depletion allowance, President Dwight Eisenhower replies, “I am not prepared to say it is evil because, while we do find, I assume, that a number of rich men take advantage of it unfairly, there must certainly be an incentive in this country if we are going to continue the exploration for gas and oil that is so important to our economy.”

1960
Presidential candidates John F. Kennedy and Richard Nixon debate the depletion allowance. Kennedy says he’s willing to review and close the “loophole.” Nixon counters, “I favor the present depletion allowance. I favor it not because I want to make a lot of oilmen rich, but because I want to make America rich.”

1969
Congress cuts the depletion allowance deduction from 27.5 to 23 percent, over the objections of the president of Gulf Oil, who calls it “a cornerstone, a major part of the foundation on which the industry has built its house. To dismantle it in whole or in part could very well jeopardize that whole structure and, to a serious degree, the economy dependent upon it.” President Nixon says the tax break is “in the national interest” because Mideast oil supplies could be cut off “in the event of a world conflict.”

1974
With the OPEC oil embargo and energy crisis at full tilt, Nixon vows to do “everything in my power to prevent the big oil companies and other major energy producers from making an unconscionable profit out of this crisis.”
President Gerald Ford authorizes the creation of the Energy Research and Development Administration to oversee energy R&D. Over the next five years, federal spending on fossil fuel research jumps tenfold to $1.4 billion.

1975
Ford almost vetoes but then signs a tax bill that repeals the depletion allowance for large companies. It remains in place for smaller, independent drillers.

1975-77
The Department of Energy oversees the first successful applications of large-scale fracking to extract oil and gas.

1977
President Jimmy Carter praises Sen. Russell Long of oil-rich Louisiana for voting “to do away with the oil depletion allowance, which was a very courageous thing to do.”

1978
Carter signs a “gas guzzler” tax on new cars that don’t meet federal mileage standards.

1979
Carter installs solar panels on the White House roof. President Ronald Reagan removes them in 1986.

1980
Carter signs a $228 billion tax on oil companies’ windfall profits as well as a tax credit to encourage the development of shale and tar oil, coalbed methane, and other unconventional fossil fuels.

1985
President Reagan takes aim at federal tax breaks. Oil and gas is one of few industries to emerge unscathed from the “showdown at Gucci Gulch.” He fails to convince Congress to kill the depletion allowance for most oil wells.

1988
As oil prices sink, Congress repeals the windfall profits tax.

1990
A bill signed by President George H.W. Bush doubles the gas guzzler tax and increases gasoline excise taxes. It also establishes a new tax credit for retrofitting existing oil wells to boost production, expands the tax credit for unconventional oil production, and loosens the depletion allowance.

1992
The Energy Policy Act establishes tax credits for renewable energy production and introduces tax deductions for cars powered by electricity and alternative fuels.

1995
President Bill Clinton signs the Deep Water Royalty Relief Act, letting oil companies drill in federal waters without paying any royalties. More than 1,000 leases omit a promised price trigger, costing billions.

1999
Clinton extends the loosened rules for the depletion allowance.

2001
President George W. Bush and first lady Laura Bush claim a $733 depletion allowance on their income taxes.

2004
The American Jobs Creation Act extends a tax break to oil companies for not shipping domestic jobs overseas.

2005
With oil prices on the rise, President George W. Bush states, “With $55 a barrel oil, we don’t need incentives to oil and gas companies to explore.” But a few months later, he signs the Energy Policy Act, which expands the depletion allowance to apply to more drillers. It also lets companies write off exploration costs over two years instead of one.

2006
Rep. John Larson (D-Conn.) introduces the Oil Subsidy Elimination Act, which could end many of Big Oil’s most lucrative tax breaks. It never gets out of committee.

2007
Illinois Sen. Barack Obama introduces the Oil sense (Subsidy Elimination for New Strategies on Energy) Act, which would repeal the depletion allowance and suspend royalty-free leases in the Gulf of Mexico. The bill dies in the Democratic-controlled Senate Finance Committee. A House bill that would have expanded tax credits for renewable energy and energy conservation also dies.

2008
Annual tax subsidies for renewable energy shoot past those for oil and gas.

2009
President Obama’s stimulus package includes $90 billion for energy efficiency and renewable-energy projects, including wind and solar electricity generation, fuel cells, and electric vehicles.

2010
The Simpson-Bowles deficit reduction plan proposes modifying or eliminating all tax expenditures and raising the gas tax by 15 cents. Former Fed chairman Alan Greenspan likewise suggests that “oil and gas depletion allowances could be restructured” as direct subsidies.

2011
House Speaker John Boehner tells abc News, “I don’t think the big oil companies need to have the oil depletion allowances.” Asked if oil subsidies should be cut, he answers, “They ought to be paying their fair share.” His spokesman clarifies: “The Speaker made clear in the interview that raising taxes was a non-starter, and he’s told the president that. He simply wasn’t going to take the bait and fall into the trap of defending ‘Big Oil’ companies.”
Executives of the big five oil companies testify before Congress about their tax breaks. In their defense, Sen. Orrin Hatch (R-Utah) calls the hearing “a dog and pony show” and displays a photograph of a dog sitting on a pony.
A national survey finds that 7 in 10 Americans (including nearly 7 in 10 Republicans) oppose fossil fuel subsidies.

2012
Sen. Bob Menendez (D-N.J.) introduces the Repeal Big Oil Tax Subsidies Act, which would end $2.4 billion in tax breaks for the big five oil companies. Obama challenges Congress to “eliminate this oil industry giveaway right away.” Unable to get filibuster-proof support, it dies.
Mitt Romney says oil subsidies go “largely to small companies, to drilling operators and so forth.” He says he’d consider cutting them—if tax rates were slashed first.
The American Petroleum Institute launches a $3 million postelection media blitz, including ads that warn seven Democratic senators up for reelection in 2014 against touching the industry’s tax breaks: “American energy—not higher taxes on energy—will create jobs.”

2013
Despite talk of everything being “on the table,” oil’s tax perks survive the fiscal-cliff negotiations.
Congressional Democrats introduce five bills targeting tax giveaways for oil and gas companies. Their death is all but assured, especially in the Republican-controlled House.
In April, Obama introduces his 2014 budget, which includes $23 billion for renewable energy and energy efficiency over 10 years and permanent tax cuts for renewable power generation. It also would end “inefficient fossil fuel subsidies.” In contrast, the gop budget proposed by Wisconsin Rep. Paul Ryan targets “federal intervention and corporate-welfare spending” by cutting subsidies for renewables. Tax breaks for oil are left untouched.

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A Brief History of Big Tax Breaks for Oil Companies

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