Barack Obama Watch: The Energy Plan

Inflate your tires was Barack Obama’s first try at a national energy policy while running for President. This was ridiculed so he has more.

U.S. Democratic presidential candidate Barack Obama proposed a package of measures on Friday to help workers fight rising energy costs, including an immediate $1,000 tax rebate for low- and middle-income families.

Obama, trying to shift the focus of his campaign debate with Republican rival John McCain back to the economy, said he would pay for the $65 billion tax package with a 5-year windfall profits tax on oil companies.

Didn’t “FAILED” President Jimmy Carter try the windfall profits tax on those evil and thieving oil companies?

Yes he did. And, Snerdly, you ask how successful was it?

History has shown that the tax reduces domestic oil production, increases U.S. dependence on foreign oil, and harms consumers with increased energy costs.

“The last time Congress imposed a form of the windfall tax was the final gloomy days of Jimmy Carter, and the result was: a substantial reduction in domestic oil production (about 5%), thus raising the price of gas at the pump; and a 10% increase in U.S. reliance on foreign oil. A windfall profits tax is the ultimate act of economic masochism because it taxes only domestic production, while imports and foreign oil subsidiaries bear almost none of the cost.” (Editorial, “Windfall Accounting Tax,” The Wall Street Journal< /I>, 11/30/05)

And, let’s see. You tax the greedy oil companies more and they cut back exploration because it is costly and then increase the price of the product to quell the rebellion of the companies’ shareholders.

Wow, Obama, is this convoluted reasoning or what? A windfall profit tax is absolutely the wrong play.

Stick with inflating your tires, Barry.