We can log this one as a Republican success!
The Democrats had another brilliant idea today of taxing oil companies an extra 25%. Our guys struck it down immediately.
As an accountant, when the taxes rise for my business clients, they raise their prices to compensate.
What did the darling Democrats think this was going to do aside from giving them more money to pay some tree-hugger to monitor Earth temperature?
Senate GOP blocks windfall taxes on Big Oil
Watching Chuck Schumer go crazy makes it totally worth it.
steveflesher
Philip
Mel Maguire
Mark Ciavola
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The blog owners will probably rue the day I found this site.
I bet I can talk about this one probably without much argument because 20 years of hydrocarbon experience and a little history on my side.
The U.S. went down this road in 1973-74 and all it did was increase the price of gas and its citizens got to wait in line to pay higher prices. And Bambi thinks this is a good idea.
I’ll tell you what the oil companies will do if Bambi gets his wish. They’ll simply cut production. And we get to ration gas. And even if the oil companies do happen to exceed whatever magic number a feckless Dimocratic Congress mandates as “too much” profit, the oil companies will pass the tax right back to the consumer.
So we’re all going to get screwed twice. It’s the Dimocratic way.
But I feel confident in our nation’s future endeavors. Because Dimocrats are especially brilliant at strategy of war, security and free enterprise {cough cough}.
All they would have to do to prevent the oil companies from raising their prices in retaliation for a tax hike would be impose a price ceiling.
They could impose a ceiling and the oil companies would still be massively profitable. It’s called regulating the industry– just like we already do with our electric power!
Though i disagree with your take on this issue, your blog is interesting… i linked to it, hope you don’t mind.
Not a problem. But I would like to say that we according to history, we aren’t paying as much for gas as we are for cigarettes, starbucks, and beer.
When you take into consideration the inflation rate since 1922, we’re right where we need to be.
I know how you feel. I want cheap gas! But the only way it will happen is if we decide it to be. The market – buyers and sellers decide the prices of things.
Reduce our dependence, drive more responsibly, look for the cheapest rates in the area – even only by a few cents, and the true government of the United States (you and me) will indeed decide.
“Watching Chuck Schumer go crazy makes it totally worth it.”
Damn whether the proposed legislation has merit or not (not in this case), you’re absolutely right! Wonder if Pelosi will break her plastic smile?
Daftparrot,
All they would have to do to prevent the oil companies from raising their prices in retaliation for a tax hike would be impose a price ceiling.
With all due respect, I don’t think you appear to understand much about the petroleum industry. As I previously stated, windfall taxes and price ceilings have been tried before and with results that led to stagflation of about 21% and 10% unemployment. Think Dhimmi Carter. If you’re less than 45 years old, you don’t really know what a bad economy is. Trust me, it can be a whole lot worse.
The petroleum industry doesn’t operate like a monopoly which delivers natural gas or electricity. Monopolies are paid for the delivery fee or the production of electricity, with the input being NG or hydro. If you impose a price ceiling, the only thing you’re really doing is guaranteeing a massive layoff of one of America’s largest and most efficient industries like in the early 1980s and supply shortages.
Here is what apparently many don’t understand. The petroleum industry’s “huge profits” have little or anything to do with the price you are paying at the pump. In fact, having worked in that capacity several years ago, I would care to wager at this moment refinery margins (what the companies are making off a gallon of gasoline) are squeezed to the point of actually operating in the red.
The “huge profits” are due to the selling of existing reserves which are very profitable at $50.00 a barrel – you can imagine how much they’re worth at $135.00 a barrel. Now you can accuse them of taking advantage of the market conditions and I wouldn’t disagree but they don’t set those conditions.
When the price of oil falls, just the opposite occurs for the companies – the worth of their reserves drops but more profit is generated at the gate when refinery margins aren’t squeezed(what the industry refers to what is sold wholesale, eventually reaching the pump).
I am not sure what frightens me more about the left and their new messiah. The fact that their economic intellect that woeful, or the fact they are apparently and completely amoral.
“As an accountant, when the taxes rise for my business clients, they raise their prices to compensate.”
You probably are not shocked at how many people who do not understand that. But I am.
Don’t get offended but one requiement to be a liberal is to have no common sense sometimes if not all of the time.
“Wonder if Pelosi will break her plastic smile?”
I thought it was a Botox smile?
The best solution for the high price of anything is the high price of anything.
If the price of beef and beer doubles tomorrow, then you can be sure people will eat cheaper foods and drink cheaper forms alcohol.
In our medical system, people are opting out to go to foreign countries where they can get the same medical procedures performed by U.S. educated and trained doctors. The savings before travel and lodging can easily surpass over 50%. And to think people want national healthcare? How about letting free market capitalism do what it does best?