Tuesday, June 10, 2008

Windfall Profits Tax? Am I Missing Something?

I don't have a ton of time to sit and write but I have been following this story over the last several days. The US Senate is debating the energy "crisis." Hey everything is a crisis anymore. Anyway.... Democrats in the Senate want to get the government's hand on the billions of dollars in "windfall" profits being taken in by "big oil." Sorry for all the quotes but I have to use all these buzz words ;). I was reading a Fox News story this morning talking about this very topic. The headline for the article was Senate Considers Windfall Profits Tax on Big Oil.

Now maybe I am just young ;) and niave but haven't we tried this before in the 80's? Didn't work then and won't work now. These braniac Senators are proposing a 25% tax on profits avove what they deem reasonable. Now tell me that isn't a slippery slope in a market based economy. You have the government stepping into the private sector and dictating how much profit a company can make and you have a recipe for economic disaster. You start telling entrepreneurs like myself and others that they can only make x amount of profits you will limit business startups, growth, and investment in R&D. The government has never ran a program in a profitable way. How are they now going to step in a tell profitable private sector corporations that they now better than them how to run the business and? I have more to say but I am running short on time. I welcome your comments....

Just so you don't think i am partisan on this matter they, the Senate Dems, did have a good idea in their package. They would require commodity traders to put up more collateral when trading in the energy futures markets. This would help curb speculation which is one factor driving the price of oil higher.

Well....I must run. Talk to all of you later....

Yours Truly,


Because You Need To Know What I Think

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