Yesterday The Hill reported that six House Democrats, including Dennis Kucinich, have proposed a “Reasonable Profits Board” to control gas profits. When are they going to propose a “Reasonable Profits Board” to control movie industry profits, sports organization profits, college profits, etc.? Why are they only picking on the oil industry? Because they have an ulterior motive. When you read down the article a bit, you find it.
The article reports:
According to the bill, a windfall tax of 50 percent would be applied when the sale of oil or gas leads to a profit of between 100 percent and 102 percent of a reasonable profit. The windfall tax would jump to 75 percent when the profit is between 102 and 105 percent of a reasonable profit, and above that, the windfall tax would be 100 percent. The bill also specifies that the oil-and-gas companies, as the seller, would have to pay this tax.
Kucinich said these tax revenues would be used to fund alternative transportation programs when oil-and-gas prices spike.
What is going on here? It’s simple. This is using class warfare to channel the anger that will occur when oil and gas prices go up because of America’s energy policies. Why am I blaming America’s energy policies? The Obama Administration just ended the Keystone Pipeline project, which would have helped with America’s energy independence and helped keep gas and oil prices stable. Please note that the federal tax on gasoline is 18 cents per gallon. The government does nothing to earn that tax money–no exploration, no scientific research, etc., yet they collect money every time an American fills up his gas tank.
The government does not have the right to judge whether any corporation’s profits are reasonable or not. Blaming the oil companies for the Administration’s failure to encourage domestic energy production is simply wrong. At some point the American people will wake up and see what is going on if they haven’t already. The people proposing this should be voted out of the House of Representatives this year!