Barack Hussein Obama’s solution to the high fuel cost problem is to raise the cost of fuel. He wants to impose a “windfall profits tax” on the oil companies, which will of course be passed on to fuel users. After noticing that the oil companies are still making a nice profit, Barack will probably push to raise his windfall profits tax and so on. Apparently the man hates profits. Never mind that his largest constituent base’s retirement funds depend heavily on corporate profits.
And there’s this other little fact that Barack ignores. The government profits a lot more than the oil companies from each gallon of fuel sold. Some estimates show the government profiting three times as much. Do you think Barack will levy a windfall profits tax on the government?
Since I was a teenager the percent increase in the cost of a Coca-Cola is as much or more than a gallon of fuel. And it has been reported that Coca-Cola’s profit rate last year was greater than the oil companies’ profit rates (where profit rate is roughly defined as the amount of profit divided by the amount of money invested in making that profit.) But we don’t hear any calls from Barack for a windfall profits tax on Coca-Cola.
Some people point out that the concern is about the “obscene” amount of the oil company profits, not the profit rate. Well, that’s like complaining to a bank that your neighbor is making more off his savings than you although both of you are getting the same interest rate, while ignoring the fact that your neighbor has ten times as much money in his account as you have in yours.
It is also argued that the focus is on the oil companies because their products are essential to our everyday lives and products like Coca-Cola are not. Well genius, that is why the oil companies’ gross revenues and profits are huge compared to companies like Coca-Cola. In times of shortages it is easier to do without Coke than fuel.
It is also worth noting that liberal Democrats will argue at the same time that oil is essential to our everyday lives and that we should implement extreme measures to limit its supply.
Funny thing. Back when Hillary advocated a tax holiday on gasoline, Obama (correctly) dismissed this as a political ploy that really didn’t address or help anything.
And this tax…also ties to score political points without addressing the base economic issues.
OBAMA’S ECONOMICS ARE DANGEROUS !!!
Unemployment at 6.1% simply reinforces McCain’s argument that if you raise taxes on businesses, they will have to cut back their work force in order to keep their doors open. In the short run, Obama’s desire to raise taxes on businesses, and give the money to struggling Americans sounds good … but, it panders to people’s desire for hand outs and immediate gratification … for, in the long run, this kind of bad judgement is like eating the goose that lays the golden eggs … or, like eating your seed crop, instead of using the seeds to grow more crops. Raising the taxes on businesses is the best way to dramatically increase unemployment in America.
You’re dead on, Howard. Pandering is exactly what most of Obama’s promises amount to. He wants to tax businesses and give the money to the poor working class, who will then have to use the money to offset the higher prices the businesses will have to charge for their products to offset their higher taxes. The alternative is to buy fewer products which will cause a business slow down and layoffs. And who gets hurt the most from all this? The poor working class of course.