(Snip)Administration officials will present the President with options, which will include financial assistance to industries affected by the coronavirus and the oil price crash. These measures may include cash injections, tax credits, payroll tax cuts, and tariff reductions on specific Chinese imports, Bloomberg sources familiar with the matter said on Monday.
https://oilprice.com/Energy/Oil-Prices/ ... YqH6-eevxg
Screw government handouts to the oil companies! A radical reduction in the price of oil and its derivitives has a potential stimulous impact on the wider economy like that of a round of tax cuts (I mean, a more broadly based round of tax cuts than the ones normally provided by incumbent US Administrations, especially Republican ones, for the purpose of rewarding targeted groups of supporters ). Not only does it benefit motorists releasing more of their income for spending on other goods and services but the flow-on leads to lower fuel imput costs for transport, industry and agriculture leading to enhanced profitability for firms and individuals in these industries.While US oil companies may be feeling the pinch, US consumers—mainly drivers—may be in for a real treat, with gasoline prices at the pump expected to fall. Average gasoline prices in the United States are already the lowest they’ve been in a year, according to Gas Buddy. Gasoline could dip below $2 per gallon in the coming weeks if the oil price war persists, Patrick DeHaan, head of petroleum analysis at Gas Buddy told USA Today.
And as gas prices go down, discretionary spending goes up—a positive development for the economy.
A more appropriate response by government might be to temporarily increase excise and other taxes on petrol in order to deter wastage thorugh excessive usage. When the price of oil rises again the tax could be progressively removed on a sliding scale. Meantime, the revenue raised could be dedicated in total to the relief of specific industries hurt by the Coronavirus epidemic.
If I know the way government works over there it is more likely that Trump will simply add the cost of the relief measures to the national debt rather than do the honest and honourable thing by funding it with increased government revenue gained via the proposed temperory tax hike.
Be warned though! Unless the disruptions to commerce and trade globally from the Coronavirus pandemic sinks the world into a prolonged economic recession as I expect it too, the current low prices resulting from depressed global demand for oil and its derivitaves cannot and will not last for long. Just as a drop in the price of petrolium products represents a de-facto boost to incomes and purchasing power all round; the ensuing price rises has the opposite effect of diminishing real incomes and depressing consumer spending.