Obama’s Oil Tax and Palin’s Oil Tax

September/15/2008 1:59AM
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Recently I’ve read where people are saying there is little difference between Obama’s proposed windfall tax plan and Sarah Palin’s tax increase to the oil companies in Alaska. I beg to differ with that comparison.

Obama is proposing a Windfall Profits Tax. From this he will create a government agency that he says will develop alternative energy. Here’s my interpretation of that. He will take money from an industry using some formula that makes sense to him. This is in addition to the billions we have already taken from that industry in the form of oil leases, royalties, and income taxes. Income taxes on money earned internationally, not just in this country. He will use this money to give jobs to deadbeats that can’t find employment in the private sector. These deadbeats will do what their counterparts do in Medicare, the post office, and other government jobs, very little. No productive gains will come of this except putting more deadbeats on the public payroll. 

Governor Palin took tax money from oil earnings in Alaska and gave it back to the citizens of Alaska. She did not create a huge bureaucracy to suck from the tit of the government and accomplish nothing. To me, that’s a pretty big difference. Helping everyone in Alaska through a tax cut funded by the oil industry vs. helping deadbeats from a tax increase that gets passed on to everyone in the country to fund employment to the unemployable under the guise of alternative energy. 

If you listen carefully to Obama all of his programs have one or both of two themes. One, the government will do it for you. Two, his yet to been seen special powers of persuasion will cause hordes of people to change behavior to meet his needs. That’s it. He’s a two trick pony. 

Of all of the crazy ideas about solving any energy problem with taxes, only one makes sense to me. If our government got out of the way of all options to develop oil and gas in the U.S. the estimated new tax revenue from leases and royalties to the Federal government is estimated to be as much as $2.6 trillion, that’s right, trillion. Today, it’s $7 billion. The$2.6 trillion is what the good folks in Washington spend in one year of our tax dollars. So, if we were to do the right thing for the country and ask the right people to do it, the oil companies, they would pay us up to$2.6 trillion for the rights and results of doing the right thing for our country. 

This would more than cover all the bailouts we are involved in today and there could be a real tax cut to those who pay taxes in this country, 50%, and a rebate to the ones Obama wants to hire to find energy, the deadbeats who don’t pay taxes. 

In addition, we could move toward energy independence, improve national security, and get the economy back on solid footing. 

If put to a vote, what percentage of the public would disagree with this, not counting Pelosi. We could always exclude those who didn’t agree by keeping their taxes the same.

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