June 11, 2008

A Mere $36 Billion!!

Quote from CNN Post:

Republican leader Mitch McConnell of Kentucky has acknowledged that Americans are hurting from the high energy costs but strongly opposes the Democrats' response and has ridiculed those who "think we can tax our way out of this problem."

I wonder how many are stockholders in the big 5 companies that earned $36 billion in profits in the first quarter of 2008.

Full story here on what was offered and what was refused…

Dubya and pals helped create this mess and the country is paying for it, financially, emotionally and physically. But let’s not focus on windfall taxes, let’s go to the backroom and figure out how to milk the taxpayers for more. Are we going to get another tearful compassionate conservative speech? Get the Kleenex ready for the gouge in your electric and gas bills! Look at the line items on your utility bills and see if you aren't being taxed out of someone's problem.

To be fair though, we have to blame the Tax and Spend Democrats too. Politicians in both parties are not the little peoples friends but sure do suck up to big corporate lobbyists.


Isaac Marshall said...

I have to agree that taxes on these companies is not the answer. Generally, our government finds ways to waste tax dollars, so this temporary influx of taxes will not solve any problem.

Even if we decrease our dependence on oil, other large emerging economies like China and India will keep demand high and thus crude oil prices will remain high.

This is nothing new, and we have faced this challenge for decades. Will we finally implement other means of energy? Will we improve our mass transit systems and change our lifestyles?

It will take time, even if the change is finally coming.

The North Coast said...

Agree, isaac, and I'd like to add that a Windfall Profits tax on the oil companies would only act as a strong negative incentive to developing what few new fields remain.

There is no question that the tax structure as it is, is viciously unfair to non-rich taxpayers, i.e. anyone who doesn't have a fortune of at least $3MM plus an income of $350K a year or more. Our middle classes, including our upper-middle classes, are being decimated in favor of the one tenth of one percent.

But a punitive tax applied to the oil companies is not the anwer. It's easy to hate these companies. Please don't think I love them, for their lobby has been a major factor in driving our disastrous public policy of the last 80 years, which is the true cause of the predicament we find ourselves in now. The current administration, of course, is to blame in supporting these failing policies in the face of overhelming evidence that they will produce a disaster going forward. Bush and Cheney know better than anyone just how quickly the world's fuel supplies are depleting- Cheney acknowledged peak oil and the impossibility of keeping even with current demand in a year 2000 speech he gave fellow oilmen, before he and Bush were elected.

The proposed tax on windfall profits is a "feel good" for an angry, frightened, confused population. It angers me to see our Dem presidential candidates pander to the desire of Americans to have their cake and eat it too, just like the Republicans,because it enables people to cling to their delusions regarding the manner of life of most Americans, and the possibility of sustaining it for very much longer.

The failure of our candidates from both parties to lay the truth on the American public- that our way of life has to change radically- is going to drive us that much faster into a future of real shortages and desperate poverty for most people. Confronting our energy situation squarely and serving up the bald, cold truth of the matter to the public is the most important task at hand for whoever prevails in November, and it's very clear that not one of two remaining contenders, or any of the ones who recently dropped out of the race, is up to the task.

We are in deep, deep trouble.