So oils up to 71 dollars a barrel and the economic know nothings that call themselves congressmen and senators are screaming for the Pres to do something about it! The problem is these dimwits and blowhards know nothing about our free market economy and how it really works. Sure the oil conglomerates have made a very healthy profit over recent years but that doesn't mean they should be burdened with a windfall profits tax. What about all the years that they lost money because oil was so cheap? Do they get a refund from the previous years when they did pay taxes? No! So why should they pay extra taxes now. The politicians on both sides of the isle say they should give some money back to the American consumer, but it won't come to me or you. If we the people allow them to fleece these corporations we'll never see a dime! They'll take the money and spend it on pet projects and giveaways to get themselves reelected.
Don't get me wrong, I'm mad at congress but I'm also mad at the President. First President Bush should have explained to the public how the system really works! Nothing he said in his speech will affect gas prices and there is nothing he can do to lower prices accept remove the state and federal taxes on gas. Just a side note here, if you look at what the gas companies profit on a gallon of gas it's only about fifteen cents per, however the taxes on gas are completely different story. Gasoline taxes are more than forty five cents per gallon!
Time for The Real Deal analysis of the day. Stop pandering to the know-nothings and start educated them about how our economy works and why the gas prices are so high.
1. There's a war in the area where most of the oil to make gas comes from....duh! This creates instability and higher prices.
2. There is a shortage of crude because demand has climbs as third world countries become more advanced and begin to use more internal combustion engines....not to mention what our growth has done to consumption of oil based products. Add in the war and and the fact that we (the USA) haven't tapped our own resources, Anwar, the Gulf of Mexico, other 'protected' wilderness areas and you've got a major shortgage. Make a choice; its low oil prices or protected wilderness, as a general rule you can have both? If you expect both, you may be a hypocrite.
3. No new refineries. Demand has jumped over the past decade and not one new refinery has been constructed in the contiguous 48. Why? See last part of point #2 above.
Here's a solution. Take some of that hard earned money we give the government for fuel taxes and income taxes and direct it towards meaningful tax relief for those that buy hybrids. Also direct R&D money to companies that are the first to develop inexpensive, mass produced hydrogen fuel cell vehicles. I'm talking about real tax relief. Say $10,000 off your tax debt. I'm talking about the amount you owe, not off your income to lower you lower tax bracket. Real money like that would create a consumer stampede to the car dealerships. Second give R&D reimbursement in the form of real money to the companies that hit a targeted deadline for roll-out of a truly new technology that changes the way automobiles are powered. Make the reward so great that venture capital in the billions would want the return and couldn't stand to ignore it as a solid investment. That solves that problem....Next! ;-)
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