Believe it or not I agree with the GOP when they say that the windfall profit tax won't do a thing to lower $4/gal. gasoline. I also agree that if the windfall profit tax is passed Big Oil will probably increase their prices. Big Oil and their cronies in Washington are going to milk this cash cow dry. However I also believe that the bill should have passed and here's one common sense reason why.
If Big Oil is making record profits they should not also need to feed from the government trough by receiving billions of dollars in tax breaks.
At present Big Oil is sticking it to consumers at the pump and at tax time. Instead of going to Big Oil, the billion of dollars of the working public's tax dollars should be directed towards companies solely committed to the research, development and production of alternative energy (excluding ethanol which is being subsidized by the farm bill).
Doesn't this make sense?
But oh, it may put a few oil industry lobbyists out of work.
Senate Blocks Windfall Tax on Big Oil
Saved by Senate Republicans, big oil companies dodged an attempt Tuesday to slap them with a windfall profits tax and take away billions of dollars in tax breaks in response to the record gasoline prices that have the nation fuming
GOP senators shoved aside the Democratic proposal, arguing that punishing Big Oil won't do a thing to lower the $4-a-gallon-price of gasoline that is sending economic waves across the country. High prices at the pump are threatening everything from summer vacations to Meals on Wheels deliveries to the elderly.
The Democratic energy package would have imposed a 25 percent tax on any "unreasonable" profits of the five largest U.S. oil companies, which together made $36 billion during the first three months of the year. It also would have given the government more power to address oil market speculation, opened the way for antitrust actions against countries belonging to the OPEC oil cartel, and made energy price gouging a federal crime.
"Americans are furious about what's going on," declared Sen. Byron Dorgan, D-N.D. He said they want Congress to do something about oil company profits and the "orgy of speculation" on oil markets.
When The Student Becomes the Master
It's Time for An Intervention