Obama plans to impose a “windfall profits” tax on oil industry
The elite, socialist, genius, agent of “change” is letting the influence of his Marxist mentor show through. In his plan to deal with the fiscal impacts of $4 gas — a price which he recently stated was a good thing that just happened too quickly — Obama has stated that his administration would impose a windfall profits tax on oil companies. He would then take that money and “give” American families a $1,000 rebate on their taxes. This plan is apparently supposed to help families deal with the rapidly rising price of gas.
Clearly, we can see that while he may have paid close attention during his international law courses at university, Mr. Obama must have skipped his into Econ courses. As any first year university student learns, corporations don’t really pay taxes; they pass the increased prices on to consumers. So Obama’s plan will only give people a quick bump in their bank accounts that will soon be just as empty when companies in all sectors adjust their prices to account for Obama’s raising of their operational costs.
If Obama was really serous about dealing with the “windfall profits” that are being made on the sale of petroleum products, his campaign platform would start by returning the hundreds of billions in profits that the government collects in the form of fuel taxes from working families across America.
API statistics show that oil companies made a 7.4% profit on sales of their petroleum products in Q1 08. That makes up 29.6 cents out of a $4 gallon of gasoline. In contrast, the government (at various levels) imposed a 13% tax on each gallon of gas — 52.4 cents on each gallon of gas. The government is almost doubling the oil industry’s income from the sale of gasoline and other petroleum products, yet Obama says nothing about their obscene profits or the impacts their taxes are having on working families.
Really people, with stats like these, who is actually enjoying “windfall profits” on the backs of the hardworking people of the country?
Obama clearly isn’t serious about helping working families. He wants to increase the size, scope, and power of government as it expands to handle the increased income from, and then redistribution of, these so-called windfall profits taxes. He wants the average American dependent on whatever handouts he is able to wring from companies and individuals, regardless of the fact that those handouts are actually going to increase overall costs.
If he were really serious about addressing the issue of gasoline prices, Obama would advocate the reduction of gasoline taxes and rebate the multiple billions in windfall profits that the government has brought in from sale of gasoline and petroleum products. As it is now, he’s just selling people a new line with $1,000 of their own taxes.