RALEIGH, North Carolina (Reuters) - Democratic presidential candidate Barack Obama said on Monday he would impose a windfall profits tax on U.S. oil companies as he sought political gain from Americans' pain over high gasoline prices. [Emphasis mine]As this blog and many others have pointed out, there are no Oil Company windfall profits. It is the Oil Producing Countries which are reaping the Windfall Profits. See here, here and here.
Surely Senator Obama realizes this fact, but he is playing to emotion, not reason - For Votes. Right now gas is at an all-time high, so it is politically expedient to appeal to our pain at the pump.
The Democrats have publicly stated that they will implement the same type of measures that Jimmy Carter did when he became President. By imposing a "Windfall Profits Tax", the Oil Companies have less money to solve the price problem. And as during the Carter Administration, prices will continue higher, production will decrease and out dependence on FOREIGN OIL will increase. None of these are good things for the pocketbook.
On top of this, the Democrats want to raise the Corporate Tax Rate. At 35% it is already the SECOND highest rate among industrial nations of the world. Democrats in Congress have put 85% of our DOMESTIC Oil and Gas Reserves off limits. Add to this the increase in Minimum Wage, and the rapidly accelerating rate of demand for petroleum products by China and other rapidly developing Countries is it any wonder the price of Gas is forecast to increase?
Senator Obama is a very intelligent person, possibly the most intelligent Presidential Candidate we have had since Woodrow Wilson. He chooses his words very carefully and ALWAYS leaves wiggle room with weasel terms. Notice he does not say the Oil Companies have Windfall Profits, but IF they do he will tax them. He is a master at making statements which sound great, but have no meat.
His ideas and pronouncements make us feel good, but he has no plan to implement. We should be asking How and at what Cost.