April 27, 2006
Please! Stop Helping!
Congress Struggles to Act on Gas Prices
Senate Republicans proposed a $100 fuel-cost rebate for millions of taxpayers. Democrats talked of a two-month suspension of the 18.4-cent per gallon federal gasoline tax.
Wait… Let me get this straight. Republicans want to give people free money, and Democrats want to cut taxes??? The Eagles are touring again! Maybe this is the year! The Cubs are gonna win the pennant!!!
(Time for another Xanax, huh?)
“While Exxon Mobil executives are popping champagne and celebrating their record profits, American families are popping antacids under the strain of searing gas prices,” said Sen. Bob Menendez, D-N.J.
And did you hear? Exxon Mobil execs kill bunnies, while Tiny Tim weeps.
Despite the jockeying for political advantage, economists and energy experts generally agreed that the government has few, if any, immediate powers to drive pump prices down for their $3-plus perch.
I’d settle for a good start. I’d settle for an admission of guilt. Their own policies, failing to allow any increase in domestic exploration, stalling new refinery capacity at every turn, mandating ethanol and the “boutique” blends for individual states, restricting things like nuclear power which might forestall some supply, and their absurdly high taxes have all had quite a hand in ensuring that gas is expensive. They say that the first step to recovery is admitting that you are the problem.
The Unrepentant Individual linked with Atlas May Shrug
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Yes, but that’s one 12 step program that no memmber of Congress will be signing up for.
The real issue is we keep giving money to monopolies to solve the energy problem. We need to shift the tax breaks from big oil companies to entrepreneurs via SBA style loan guarantees to companies with a vested interest in competing with oil companies.The last Energy bill did the absolute opposite. Read what Adam Smith said about monopolies .
Monopoly:-
§ “A monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufactures. The monopolists, by keeping the market constantly understocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate.†(vol. I, bk. I, ch. 7.)
§ “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings by any law which either could be executed, or would be consistent with liberty and justice.†(vol. I, bk. I, ch. 10.)
bThe issue is much bigger then just oil. We need to focus on SBA type loan guarantee programs instead of corporate tax breaks under our current tax system. Availability to capital is worth more than tax breaks to a growing company. Also this demonstrates if the company wants to grow or just increase the bottom line. This will drive more jobs and tax revenue due to expansion.Finally it will make the business put up equity and guaranteeing investment in our country and commitment to the plan.
Adam Smith
Politicians:-
§ “It is the highest impertinence and presumption, therefore, in kings and ministers [read politicians] to pretend to watch over the economy of private people, and to restrain their expense. They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their own expense, and they may safely trust private people with theirs.†(vol. I, bk. II, ch. 3.)
3
Tax breaks do not guarantee investment to grow a business. That is why SBA style loan programs make the company put up their own money. The net effect is better to a company who really believes in the idea. Capital is the biggest issue for a small business grow.This type of program has generated excellent returns on investment. Companies like UPS started this way. Would anyone argue the next UPS in energy business is not out their? This would grow high paying jobs? This would increase tax revenues.
[...] This legislation, in fact, is a boon to the major gasoline chains. They’re the ones that know that if they get investigated, their armies of lawyers will keep them clean. It’s the little guys, like Warren, who would rather hang up their spurs than face the risk. Increased regulation helps big corporations improve market share, and will only end up creating higher prices and harder-to-find gas for consumers. I said before that this problem will only improve when individuals start to see government as the problem, not the solution. [...]