Windfall Profits Tax Is A Tax On Success
I am very upset about the price of gas today, just as everyone else in the country is. I think we need to start drilling in ANWR, the Rockies, and the outer-continental shelf. I think we need a lot of things done now, but one thing we don’t need is a WINDFALL PROFITS TAX!
First point: windfall profits taxes are nothing more than a profit on success. Basically, the idea is an extra tax on a company that makes an unexpected profit. Does this make sense??? Every company can hope for a profit, but realistically, they are all unexpected. You can project, forecast, expect, and so on, but no one really knows if they are going to make money. Also, isn’t the point of being in business to make money? If we wanted to start a business and only make as money as the government told us we could make, we would move to a socialist country (by the way, this is what the Democratic Party would like to see). The last time I checked, a capitalist economy allows people to privately own a business, including its profit. I think a windfall profits tax is against capitalism and everything America is built on!
Second point: did windfall profits taxes work out in the 80’s? One component of the taxes in the 80’s was a 70 percent tax that was levied on the difference between the market price received by oil companies and the average base price of $12.81 per barrel (http://www.taxfoundation.org/news/show/1168.html). 70 percent? Doesn’t this seem like excessive taxation, one of the reasons we revolted over 200 years ago?
Following the windfalls profits tax, the government projected $320 billion in extra tax revenue, but it only ended up with $40 billion. Next, domestic production was decreased by 3 percent to just 6 percent. Now if we all agree with the laws of economics, less demand increases price; more supply decreases price. Is this a good idea, Democrats? Should we really pursue a windfall profits tax, Barack?
I want to pay less for gas, but the Democrats’ solutions are just going to raise prices, decrease production, and delay any real relief.