Comments on: Windfall profit tax

By: D

Wed, 11 Jun 2008 15:31:22 +0000

Part of the problem with the supply/demand equation is that among others, China and India (two of the world’s fastest growing economies) are subsidizing oil. This in turn obviously mitigates price increases (and market forces affecting demand) in those countries for their consumers. In regards to R&D, exploration, etc. especially in regards to the U.S. - look no further than the U.S. Congress as to why there has been little to no progress. See the link below for further explaination.

http://www.worldtribune.com/worldtribune/WTARC/2008/ss_oil0158_05_20.asp

Though this source isn’t exactly unbiased, it does at least include House Resolution Numbers for documentation.

I too hate the high prices at the pump but I hate even more the misinformation out there - coming primarily from U.S. politicians and their echo chamber news outlets. I also don’t like the prospect of our politicians “addressing the problem” by demonizing the producers and driving up their costs (which ultimately get passed along to us.)

Ds last blog post..Headlines that make my head hurt

By: Scott Allan

Scott Allan — Wed, 11 Jun 2008 14:28:40 +0000

I agree with you Ike. I wouldn’t be in favor of a windfall profit tax but I do understand the anger over high prices. As far as I can tell, there is no good reason why they should have gone up so fast. I’m just saying the gas companies better help with the solution, before something drastic happens.

By: Ike

Ike — Wed, 11 Jun 2008 06:23:56 +0000

Scott, I can’t bite on this one. Oil/energy companies are not owned by Boss Hogg, who can decide how much is enough. They’re owned by people who invest through 401K plans.

A “windfall tax” is nothing more than a shift of burden. Oil companies will pass the costs along, or even worse, actually divert money away from new tech research. Go check out the Angry Economist… http://angry-economist.russnelson.com/something-must-be-done.html