We dodged a huge bullet today, but I really wonder for how long we'll be able to hold this idiotic, already tried and failed, "windfall" tax on oil profits. There's a multitude of issues that are at stake here and the Dems are playing this out as only the socialists can. Only one Dem voted against proceeding with the bill, Mary Landrieu of LA, and only because she's up for re-election in Louisiana, and she's a big target for the GOP this fall. Here are just a few problems with this bill:
1. Market Manipulation. True, Morgan Stanley did the entire free market dirty on Friday by purposely saying they believed oil would go to 150 after getting jittery when the price per barrel went down to about 122 last Thursday. It shot up to nearly 140, surely something that needs to investigated. However, their proposal to transfer oil company profits to the industries that are funding the Democratic Party's election bids is nothing more than a kick back and artificial inflation of the stock prices of many solar, wind, and geothermal companies. A clear market manipulating tactic and obvious kick back.
2. Free Market Violation. In every regard. The oil companies should not be forced to invest their profits into the companies that Congress picks. This is not Venezuela. That's pure Marxist tactics. It also does not allow for further drilling and oil exploration of domestic sources to expand supply. It's true that we do not operate under a free market system and we are subject to a cartel in the form of OPEC. It should also be noted that because of this any drops in demand as the Dems and radical greens are promoting can simply be met by a drop in supply by the oil cartel in order to keep prices high. A short term increase in supply would be more effective, but only if demand also lowers. Hence, domestic expansion and releasing us from OPEC's clutches while developing more fuel efficient technologies is the best way forward while simultaneously developing alternative sources in the free market. Just look at car lots. The market is working, there are more SUVs on the lots, car sales defeated truck sales for the first time in a very long time, and that was the free market.
3. The Cost of the Tax Will Be Shifted To the Consumer. We already know that production will fall in the US and that oil companies will be less apt to develop more sources, but it's also painfully obvious that an increase in taxes will simply be shifted to the consumer. History holds this to be true.
4. No Long Term Solution. Politicians from both parties like to go out and talk of breaking our dependence on foreign sources, yet we still refuse to develop more sources here at home, which are vast and numerous. Between oil, natural gas, coal, and nuclear, we have many sources that would be able to be utilized in the short term (say 20 years) as the market moves to increases in nuclear, solar, hydrogen, etc. Many politicians throw out a five-year plan type of deal, but that's a lie, and they know it. We will have demand for oil forever, albeit much lower in the future. People will still want to utilize their vintage cars, many cars 20 years old are still operational, etc. Even assuming that we were to be "oil-free" in five years, at what cost would the government shell out to replace every single oil consuming vehicle. Do you really think middle and low income families can afford to replace all the vehicles to buy new, expensive technology? Of course not. Of course, I could make a very strong case that the Greens are using fear tactics and market manipulation in order to make profits for themselves while further their political agenda and create a new sort of serf class that will be unable to pay to receive the benefits that the ultra rich can afford. But hey, it's OK because they can afford to pay astronomical "carbon" fees but if the lower or middle class can't, they shouldn't be allowed to do so.
I could go on forever here, but you get the drift. The GOP really got one right today.