More Democrat Oil Bullshit I can't say I've been anywhere close to happy with the former Republican majority, but at least they restricted their hijinks to sending sexually explicit text messages, and empty posturing. Not so much with the newly elected Democratic majority. A large part of my day is spent scanning business news, and the Democrats are already talking about penalizing Big Oil for the recent record profits.
What the Democrats have also failed to consider is that this record profiting by the oil industry has caused substantial appreciation in the stock value of said companies, and these companies are owned by mutual funds, and your 401k is determined by mutual fund performance. So, what the Democrats are going to do to solve high energy prices is A) not give you any money B) make it so you're probably paying more at the pump and C) make sure that your 401k posts weaker returns while also mismanaging private pension fund money and letting Social Security go the way of Newt Gingrich's "Contract with America."
Republican majorities! Brilliant!*
Holding a slim majority, Democrats will instead attempt to eliminate tax breaks for energy companies and raise royalty payments for oil and gas drilled on federal land, according to a spokesman for House speaker-to-be Rep. Nancy Pelosi.Now, the biggest question remaining is how to reconcile this plan of action with statements like this:
"Oil companies are swimming in windfall profits and American consumers are sinking," -Sen. Dick DurbinI'm confused. The problem seems to be that oil companies are making money, and ye olde taxpayers aren't, so the Democratic solution is... more taxes? How does this help consumers? By not giving them any money back and giving the oil companies more reason to raise prices to maintain profit levels? I may not be that smart of an individual, but I'd like to think I can recognize idiocy when it's river-dancing on my 17-inch LCD monitor. This. is. idiocy.
What the Democrats have also failed to consider is that this record profiting by the oil industry has caused substantial appreciation in the stock value of said companies, and these companies are owned by mutual funds, and your 401k is determined by mutual fund performance. So, what the Democrats are going to do to solve high energy prices is A) not give you any money B) make it so you're probably paying more at the pump and C) make sure that your 401k posts weaker returns while also mismanaging private pension fund money and letting Social Security go the way of Newt Gingrich's "Contract with America."
Republican majorities! Brilliant!**Only when compared to much less brilliant Democratic ones.
posted by Justin at 12:57 PM 
1 Comments:
I don’t know. This is a tough issue. I’m against windfall taxes—you shouldn’t go tax or penalize someone just because they made a lot of money. That would mean you went after a different industry every year. The only right thing to do is to be just. So, my argument would go like this:
There is a just rate to tax the oil companies at.
There is a just royalty the oil companies should pay the feds.
Tax and royalty rates should aim towards those rates.
I mean, you don’t worry about the stock price of a firm and the effect punishment would have on it if it’s egregiously breaking the law—you do what’s right.
And peripherally, it’s irresponsible of our government to continue to spend money on programs it can’t afford and just push off the day of reckoning into the future.
So, as I said, I don’t know.
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