Posted by
Neophyte Pundit on Thursday, May 08, 2008 6:00:00 AM
Hmmm...the Do Nothing Democratic Congress is offering an Energy Plan...about time! But wait what is the nuts and bolts of the plan?
- Raise Taxes by instituting a "windfall profits tax" of 25%
- Cease "big oil" subsidies
- Increase renewable, alternative fuels (can you say ethanol?)
That's the plan? What part of basic economics is so difficult to understand? Basic Econ 101: higher demand and less supply creates rising prices. Raising taxes is so foolhardy, as who pays the taxes? When the windfall tax hits, ya think the oil companies won't merely raise the price to soften the blow? Add a quarter to each gallon of gas? Big Oil is already paying huge tax bills, Exxon Mobil paid over $30 Billion! Ouch! What other company kicks in that much in taxes?
Nothing in the Dimocratic Bill will affect oil supply and demand. Unless, you are a farmer growing corn! The price of foodstuffs comodities continue to rise as well. Hmmm...farmers the world over have been increasing corn production, not to feed people, rather it is to put the corn into ethanol supplies. Hmm...what happens to the price of corn? The price of beef, less supply for feed? You got it: higher prices...
So, corn goes up in price, gas goes up in price...that's sound economic policies...yep, I want Obama and Clinton in the White House, then I will feel better about myself...
Someone in Congress has got to reduce our reliance on foreign oil. Someone has got to increase our supply of gasoline by building oil refineries! We haven't built a refinery in 30 years! We need Nuclear power, if France can power 80% of it's nation by Nuclear Power, we can...open drilling in ANWAR and offshore! Don't touch anything that resembles a wind fall porfits tax.
Thank goodness Bush is in power for now...he can veto the nonsensical Dimocratic Energy Plan....
What say you?