Democrat: Eliminating Oil “Subsidies” Would Lower Gas Prices
As has been pointed out ad nauseum, we’re not talking about subsidies. We’re talking about tax deductions. The federal government isn’t sending these oil companies a check. They’re simply not taxing them as much as they might have otherwise.
Unless we want to argue that business expense deductions and home mortgage deductions are subsidies too, that’s a tax break. But that’s not stopping Democrats from not only pushing head with the “subsidies” mantra but also suggesting that ending these “subsidies” (which would amount to tax hikes) will lower gas prices. Click the image to watch Rep. Steve Israel, the new chairman of the Democrat Congressional Campaign Committee, display his economic illiteracy:
Answer me this: When has the government raising taxes ever made anything cheaper?
It doesn’t. Government interference in the market, be it taxes or regulation, drives up prices. The more taxes and regulation, the higher the prices.
If we want lower gas prices, we need less government obstruction of the oil industry through taxes and regulation. It’s as simple as that.Tags: oil, steve israel, Taxes