Wednesday, June 11, 2008

GAS AND GASBAGS

By Bob Ward

Outrageous gasoline prices have got a lot of Americans angry and politicians, not being completely oblivious, have noticed. In fact, the Democrats even have a solution to high gas prices. It doesn’t involve anything as simple-minded as increasing oil production by allowing drilling in the U.S. and offshore. Instead, their solution is to increase taxes on the oil companies.

The plan is to rescind the tax breaks the industry currently enjoys – the Democrats call it a giveaway even though it’s the companies’ own money. In addition they wanted to add on what they call a “windfall profits tax.” A windfall profit is any profit a company earns above what the government decides it should.

So far, the Republicans in Congress have managed to block this effort but, compared to liberal Democrats, Lazarus was a quitter. And after November they may have the White House on their side.

The Democrats never did explain how raising the taxes on a company lowers the price of its product. But if it does, they’re really on to something. By this theory, if they raise the tax rate to 100 per cent, gasoline will be free.

And why stop with gasoline? Why not raise taxes on General Mills and bring down the price of corn flakes. And, since food prices across the board are increasing maybe we should to sock it to the farmers with higher taxes. Never mind repealing the absurd ethanol mandates.

Do the Democrats really believe this bilge about bringing down gas prices by increasing taxes on oil companies. That’s unlikely, but it does appease the anti-business inmates currently running the Democratic asylum.

4 comments:

Anonymous said...

The major oil companies in the US are owned by (suprise!) regular Americans. Even if you don't own stock directly you probably own it through a mutual fund or pension fund. The City of Austin's pension fund's largest holding is Exxon/Mobil.

Freedom's Truth said...

The Democrats are like Johnny One-Note ... there solution for every problem is ... HIGHER TAXES. I've never seen higher taxes lower the price of anything.

SBVOR said...

If you care to, click the link and spread the word.

Randy A. Samuelson said...

I think it is ironic that the government generates more revenue in taxes off of a gallon of gasoline through the gas tax than the oil companies make in profit off of that same gallon of gasoline. The profit margin for the government on gasoline is higher than the profit margin for the oil companies! And the government has done nothing to earn that money and spend the revenue on things that do not build up our economy.