You’ve probably figured out by now that we really have never met a tax cut that we didn’t like. Over taxation doesn’t result in more efficient government with more services – it results in government attempting to do too many things for too many specific groups and generally making a mess of the whole damn thing.
That being said, we happened to catch one of Hillary’s new ads that just scared the bejeezus out of us. In this spot aimed at attacking The One named “O”, Hill proclaims her desire to save us all gas money by giving us all a tax holiday from federal gasoline taxes. So far it sounds pretty good to us even though it is a bit gimmicky and doesn’t solve the problem we have with high gas prices - which is primarily a supply problem.
What is terrifying is that the Hill ad goes on to explain that they’re going to pay for the tax holiday with the eeeeevil windfall profits of oil companies. We’re not in bed with big oil and the only connection we have with any oil company comes when we’re filling the Eyemobile with their product. We’re also not overly enthused about paying four dollars a gallon for gas. However, threatening to steal a business’ profits in order to get elected is morally and ethically reprehensible.
Hillary's not proposing a tax holiday where the government is burdened to help its citizens; it's a scheme where private companies will be shouldering the burden. Our taxes will be replaced by massive taxes on a few companies in one sector of the economy.
Like it or not oil companies are businesses. They remain in business not by giving away their product but by making a profit. Folks, profit is not a bad thing. In fact, without profit there's no product to supply. It's a simple fact that we all have responsibilities, obligations, and dreams that require compensation and that compensation comes from profit. Ask yourself would you work for free?
Ultimately, what schemes like Hill's do is make an already scarce resource even more scarce. People don't work for free and neither do companies. If anyone were to impose this kind of retroactive taxation the companies affected would leave - maybe not today but eventually.
What's most troubling is that this type of political posturing has gone relatively unremarked. At a time when our supply of energy is being taxed by increased global competition we ignore or miss a very real threat to our economy and our freedom that has more dangerous consequences than four dollar a gallon gas.
10 comments:
nobody wins unless everybody wins. and you can't win by beating up on people who can't defend themselves.
exxon made record profits. and we all pay 4 d0llARS a gallon.
Politically this is a pretty good idea for Hillary, because most people don't bother thinking it through. If the government puts a hold on the gasoline tax and then places a windfall tax on the companies supplying the gasoline, what is going to happen? The companies will pass the new tax cost on to the consumers, raising the price back up to where it started.
All of these gas tax "holiday" plans are total pandering bs, including McCain's. None of them has a prayer of being accomplished by summer and even if they were, they would save the average person about $30 over the whole period (which is just memorial day til labor day.)
Obama is 100% correct that these plans are stupid.
I have no problem with anybody making a profit. I would like to see a profit myself! I am willing to take any price break from any filling stations, but the small discount that the Fed's are considering through the Summer will not make much of a difference for me. I spend at least $100.00 or more per week on fuel and I really don't do much driving outside of my daily work schedule any more. I spend less on my family and vacations. I am not paid any more for the work I do. I work more than two jobs, and usually come home only to sleep. I do what I can to make my family comfortable. I would like to see our leaders take charge and help the average family by doing what is right (and straighten this mess out). I'll get by, but it would make me feel better if more of us were on the same team and we were fighting for the same cause.
There don't seem to be any facts to support the opinions here. I'm looking for a more factually based conservative blog for my students to read, but this doesn't qualify.
Perhaps when they get to the unit where they evaluate media since this site is missing so many of the criteria which give sites credibility.
Good post Eye....
Now let's give a little economics lesson to those who might be too dense to get it.
A standard barrel of oil is 42 gallons. Since the market (largely OPEC nations and their control of the flow out of the ground) sets the price at the wellhead (currently around $115/barrel) that works out to be $2.738/gallon.
The Federal tax on a gallon of fuel is about 18.4 cents/gallon ($0.184 to kept out monetary units correct). The NM State tax on fuel is a like amount (~18 cents), which by the way I don't hear Gov. Bill offering to recind. So if we add up the cost of the raw material ($2.738/gallon) plus the tax burdens (2X $0.184) we get $3.106/gallon.
If we subtract that from the current typical price of regular in town ($3.459/gallon) we get 35.3 cents (less than the combined Fed and State tax burden) for the oil companies (and their outlet retailers) to refine the raw product, transport it to where it needs to go, and derive a profit from in the process.
So if anyone is deriving too much "obcene" profits from the sale of petroleum fuels, it is the Governments since they do virtually nothing to contribute to its availibility.
Hillary - like so many of the voters themselves, never read a finance textbook. THe bottom line always remains and thus incurred costs will be passed on to consumers. THe same argument goes to socialized health care which will save me thousands per year in health care but will increase my tax cost by yet more than the savings.
HUCK FILLARY IN 2008 AND MUCK FARTIN CHAVEZ IN 2009...THAT SAID, EVERYONE HAVE A NICE WEEKEND!
The same ol' BS the politicians pulling the wool over our eyes!
Solar and wind energy has been around for decades. There use to be tax credits for citizens if they installed solar on their homes. It wasn't a 100% solution but it did help.
Then the Reagan administration took the tax credits away. Why? Because big oil has big lobbyists with big money for the politicians that helps make the world go around.
This whole Hill, blue colar worker friendly, BS is just another ploy. She was born with a silver spoon in her mouth and doesn't have a clue. Although I have to agree it is a good marketing move.
"since they do virtually nothing to contribute to its availibility."
Except build the roads, of course, that this tax (in effect, a user fee) is supposed to go towards for maintenance and construction purposes.
I don't want a tax holiday if the roads get worse. I'll just end up paying extra in repair bills. The "obcene" profit isn't hard to find, it's right under your wheels.
Bottom line: Herr Hillary's plan is nothing more than stealing. Which doesn't surprise me when it comes from the government. After all, that's what keeps them in business.
But when I hear average, ordinary citizens jump up and down with glee at the prospect of stealing and redistributing private property? I have to wonder about our collective intelligence.
THINK people, will ya?
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