Tax and Spend Republicans?
The Republicans are flipping out that they and their SUV driving constituency are being bled to death at the pump. And, they are proposing a tax on oil profits!
“The Republican plan includes a provision that could levy a significant tax on oil company profits, a provision that President Bush promised to veto when a version appeared in a Senate bill last year. The proposal came on a day when Exxon Mobil reported a 7 percent gain in its first-quarter earnings.” -NY Times
Here’s an idea for you. The oil companies deal in a scarce commodity that is becoming harder and harder to obtain. As oil becomes scarce its value increases and oil companies make tons of money. It is simple economics 101. However, human beings have an incredible ability for self deception and nobody is willing to admit that the oil supply will run out as world demand increases much faster than was ever predicted.
There are already tons of government subsidies that mask the true cost of oil and the ridiculous price of maintaining the American highway system. The owners of gas guzzling cars are driving our economy right off a cliff. I think a tax on these gas guzzlers would be a much better idea.