“The oil companies need to know that there is a limit on how much profit they can take in this economy,” said Sen. Dick Durbin, the Senate’s No. 2 democrat, saying that if energy prices continue to rise, “we’re going to find ourselves in a deep recession.”
I’m sorry, Dick. There is a LIMIT on profit in our capitalist economy?
If you see a Republican senator, pat him on the back. Today, they fought off the democrats and their socialist intentions, pushing back a bill which would greatly increase the tax burden on oil companies by taking away billions of dollars in tax incentives and creating an additional tax on windfall profits.
The not-so-funny thing — the democrats rationalized the taxation as a way to bring down energy costs.
Think about it. If, all of a sudden, milk was proven to cure cancer, the dairy farms would all be doing great business. The price of milk would go up as a result of increased demand and a supply which, at current capabilities, can only be increased so much (I imagine that udders get sore). With the dairy farms pulling in so much extra profit, they could either sit on that profit or go out looking for new ways to get more cows or get more milk out of the current herd — investing in the business to make even more profits. Dairy farms would understandably do what’s best for themselves, for their investors, and even for the cows – and in a capitalist society, they would be completely within their rights to do so.
Dick Durbin and his flunkies would want a piece of that [cow]pie. He’d look at the record profits being pulled in by the dairy farms and deem them far beyond the “reasonable” level as set by he and his colleagues. He’d take 25 percent of those profits, undoubtedly redistributing them through welfare programs and education scholarships for illegal immigrants and Woodstock museums and whatever other crap projects Congress had developed. Classic socialism — redistributing wealth from the rich to the poor [in theory].
Now, what effect would that increased tax burden, that spit in the face of capitalism, have on the dairy farms? What incentive would the dairy farms have to expand and invest in their business, to look for alternative means of collecting milk? What would the excess tax burden do to the price of a gallon of milk for families who depend on that milk for cereal, for pudding, for mashed potatoes? It would increase, of course, and such costs would increase for everyone. The increased tax burden would be passed right on down to the consumer.
The oil companies will do the exact same thing. Prices would go up, not down. The tax money collected, surely earmarked for investment into alternative fuels, would either be bungled by the same bureaucracy which bungled the Katrina aftermath, or it would go toward things like ethanol, which drives up food prices and does more environmental harm than good.
It wouldn’t stop with oil, either. Taxing windfall profits on oil companies would leave the door open for doing the same with any successful organization or industry. Technology would quickly move from America to India or China. Pharmaceuticals would do the same, and the increased taxation on profits would be a perfect segue into the disaster that is socialized medicine.
If Dick Durbin is truly worried about increased energy prices driving the U.S. into recession (he isn’t), he should re-think the measures he previously shot down, measures that would have increased supply and provided actual relief to consumers and to the economy. Drill here. Drill now. Save money.
In the meantime, look for the bill to be re-introduced next year should the political left control Congress AND the White House…