May 4, 2008

Dumbest. Plan. Ever. WSJ's Take.

Here's what the WSJ editorial page has to say about Obama's election year plan to lower gas prices by raising the marginal corporate tax on oil companies ABOVE it's present level of 35%:

Mr. Obama is right to oppose the gas-tax gimmick, but his idea is even worse. Neither proposal addresses the problem of energy supply, especially the lack of domestic oil and gas thanks to decades of Congressional restrictions on U.S. production.

(...)

Last week Pennsylvania Congressman Paul Kanjorski introduced a windfall profits tax as part of what he called the "Consumer Reasonable Energy Price Protection Act of 2008."

And about energy policy politics in general:

This tiff over gas and oil taxes only highlights the intellectual policy confusion or perhaps we should say cynicism of our politicians. They want lower prices but don't want more production to increase supply. They want oil "independence" but they've declared off limits most of the big sources of domestic oil that could replace foreign imports. They want Americans to use less oil to reduce greenhouse gases but they protest higher oil prices that reduce demand. They want more oil company investment but they want to confiscate the profits from that investment. And these folks want to be President?

But there is hope:

Late this week, a group of Senate Republicans led by Pete Domenici of New Mexico introduced the "American Energy Production Act of 2008" to expand oil production off the U.S. coasts and in Alaska. It has the potential to increase domestic production enough to keep America running for five years with no foreign imports. With the world price of oil at $116 a barrel, if not now, when?

So does the AEPA have a chance of passing instead of the CREPPA? The chances may be slim but as Wayne Gretzky used to say, "You miss 100% of the shots you don't take."

Dem2008 Primary GOP2008 Primary Oil and Energy Posted by JohnGalt at May 4, 2008 1:46 PM

Shamelessly commenting on my own post-

Disregard for a moment whether either of the proposed Acts would or could actually achieve its stated goal and instead consider the competing intents:

D-PA: "Reasonable" energy price protection for consumers.

R-NM: American energy production.

That pretty well sums it all up, doesn't it?

Posted by: johngalt at May 5, 2008 3:21 PM | What do you think? [1]