Barack Obama’s Solution For High Gas Prices: Tax Oil Companies
And then use the proceeds to give $1,000 tax rebates to citizens so that they can buy gas.
I shouldn’t have to explain how stupid this is, but since the liberals take everything that comes out of Obama’s mouth as gospel, I will anyway.
Taxing oil companies adds expense to the business of producing gasoline. That expense, like all taxes on businesses, gets passed on to consumers. So the tax, which is supposed to generate revenues Americans could then use to buy more gasoline, will just make that gasoline they’re buying more expensive. Setting up a vicious cycle where the tax is applied, gas gets more expensive, and then the tax is raised again to generate more revenue for more gas rebates.
It’s like Obama is trying to invent a perpetual motion machine here. Except that perpetual motion, or in this instance perpetual tax and entitlement schemes, aren’t possible. Yet another tax on the oil industry isn’t likely to create much additional tax revenue. And even if it did any good that revenue would do in giving Americans more money to buy fuel would be offset by the increase in gas prices the tax itself would create.
