Long Live Dorgan - King Of The Panderers
Sen Byron Dorgan has introduced the "excessive profit rebate act." The act would tax profits made by oil companies from oil prices over $40 a barrel at a rate of %50. The proceeds of this tax would be rebated to American citizens.
Sound ok? Most say yes without thinking about it. I ask that everybody reject this attention-getting ploy. Dorgan seems to think that the oil companies just raised prices wily nilly in an effort to have more Tahitian retreats or something. That's wrong. The price of petroleum is set by simple supply and demand. Two major hurricanes and substantial pipeline disruption caused the quantity supplied to decrease. Since gasoline is relatively inelastic, prices therefore went up. (I'll wait while y'all grab your econ 101 text book and check this out ... back? Good. I'm right aren't I?)
If Dorgan were really concerned about prices that consumers are paying at the pump maybe he should introduce a bill reducing the federal gas tax. A modest $0.04 decrease would save consumers $6 billion!
Of course that would mean less money for Dorgan and his cronies in DC to spend on Alaskan bridges to nowhere and painting jet airplanes like fishes (two of my favorite pork barrel projects in the latest transportation bill).
Understand this: Dorgan likes taking from other people, he dislikes having less money to spend himself.
The effects of Dorgan's Marxist legislation is two-fold: First, pension plans and private retirement accounts would be hurt. These accounts rely on defensive classified stocks like oil companies to provide a safe level of return to provide for retirement. Second, it would probably stabilize if not increase the pump price as oil companies try to maximize earnings (i.e. the tax would pass to the consumer).
The worst thing is that Dorgan introduces this at the same time the oil industry in ND is booming. Oil drilling in western ND is sky rocketing. There is a lot of oil out there, but unless the crude oil price is high enough, it is not economical to produce it. Dorgan is hurting the oil boom in ND for crass political gain.
I can't help but wonder if Byron would support an Excessive PAC Contribution tax where any Political Action Committee donation receive by incumbent Senators would be taxed at %50.
I'm guessing no.
Sound ok? Most say yes without thinking about it. I ask that everybody reject this attention-getting ploy. Dorgan seems to think that the oil companies just raised prices wily nilly in an effort to have more Tahitian retreats or something. That's wrong. The price of petroleum is set by simple supply and demand. Two major hurricanes and substantial pipeline disruption caused the quantity supplied to decrease. Since gasoline is relatively inelastic, prices therefore went up. (I'll wait while y'all grab your econ 101 text book and check this out ... back? Good. I'm right aren't I?)
If Dorgan were really concerned about prices that consumers are paying at the pump maybe he should introduce a bill reducing the federal gas tax. A modest $0.04 decrease would save consumers $6 billion!
Of course that would mean less money for Dorgan and his cronies in DC to spend on Alaskan bridges to nowhere and painting jet airplanes like fishes (two of my favorite pork barrel projects in the latest transportation bill).
Understand this: Dorgan likes taking from other people, he dislikes having less money to spend himself.
The effects of Dorgan's Marxist legislation is two-fold: First, pension plans and private retirement accounts would be hurt. These accounts rely on defensive classified stocks like oil companies to provide a safe level of return to provide for retirement. Second, it would probably stabilize if not increase the pump price as oil companies try to maximize earnings (i.e. the tax would pass to the consumer).
The worst thing is that Dorgan introduces this at the same time the oil industry in ND is booming. Oil drilling in western ND is sky rocketing. There is a lot of oil out there, but unless the crude oil price is high enough, it is not economical to produce it. Dorgan is hurting the oil boom in ND for crass political gain.
I can't help but wonder if Byron would support an Excessive PAC Contribution tax where any Political Action Committee donation receive by incumbent Senators would be taxed at %50.
I'm guessing no.
likwidshoe
robert108
global warrior
RebTex
Hannitized
