On the Presidential campaign trail Senator Barack Obama has been hailed as an articulate, inspiring, speaker. Given his new proposal to tax the “windfall profits” of oil companies, I’d have to say when it comes to economics, Obama is CLUELESS!Granted, oil companies are an easy target to vilify with prices at the pump setting records on a daily basis and headlines proclaiming record profits for the giants like Exxon/Mobil, but Obama’s, “looking out for the little guy” brand of populism is nothing but hot air!
Obama’s proposal calls for a tax on oil sold at or above $80 per barrel and that the money generated by the tax would be doled out in the form of a middle class tax rebate of $1000 and $150 billion spent on “clean energy” over ten years.
Most folks are going like the sound an extra $1000 in their pockets, but here’s where the Obama plan slides off the rails, these corporations DO NOT PAY TAXES. No it’s not because of some corporate, Republican, loophole or tax break, they don’t pay taxes because they tack the cost of taxes onto the price of their product.
The state tax of 34 cents per gallon and the Federal tax of 18.4 cents per gallon is on the wholesale price, which the oil companies pass along to consumers at the pump. So what does Senator Obama think that these companies are going do when they get whacked with this ridiculous tax?
What will the price per gallon jump to, to cover these additional billions of dollars of taxes? Now how does that extra thousand bucks sound? The last time this type of tax was tried was during the failed Presidency of Jimmy Carter and it resulted in a 50 to 70 percent tax on the market price of oil. Can you say $10 per gallon!
Just imagine the trickle down impact of this tax on other businesses, which also don’t pay taxes because they pass them on to you. The economy is largely based on transport so this tax will impact the cost of everything! Literally the price of everything you consume will be impacted to cover the cost of this tax.
Could that be the much-ballyhooed Change, Mr. Obama has been yapping about?
5 comments:
The last person who criticized Barack Obama on the Erie Blogs is no longer part of the select few. Let this be a warning to you my right leaning friend. As much as we enjoy your blog, your days as an Erie Blogger just might be numbered. Please be careful not to offend the keeper of the Erie Bloggers.
A....okay.
Thanks...I guess.
Yes, yes...liberals believe in "freedom of speech", only as long as it is Liberal speech.
That person was removed not for criticizing Obama, but for the continuous hate he spewed. He was very racist and did nothing but put Obama down solely because Obama is black.
...and who was the judge and jury who came to the conclusion regarding "that person?" Who decided hate was being spewed and who determined "that person" was a racist? I'm not defending "that person" but it appears to me some of the comments and personal threats left on "that persons' blog were far more offensive than what "that person" wrote. Shame on Mike for removing "that person" from the Erie Blogs. It was wrong and he shouldn't have done it.
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