More on Obama’s Oil Tax Plan
Many believe that NPR reflects a liberal bias. I don’t believe that to be the case. Much of the time, their reporting is the best of any news outlet. In this story, Michelle Norris asks the golden boy a tough question and receives a very revealing answer.
Michelle Norris: I want to ask you about your proposal to force big oil companies to share their record-breaking windfall profits. It’s hard to find an economist who supports the idea of a windfall profits tax. Most argue that this would stifle investment in oil discovery and oil production precisely at the moment when the U.S. should be encouraging more.
Barack Obama: Classic economic theory says you don’t meddle in the markets. Look, I mean, most economists buy into that approach. Exxon Mobil made $12 billion last quarter. They made $11 billion before that, and $11 billion before that, and not all of this is going into research and development — and families need some relief.
There you have it! Obama admits to knowing the correct economic way of thinking and then proceeds to propose the opposite. Obama actually has some sensible economic advisors, including one that is pro-Wal Mart. However, as this interview shows, he is not prone to following economic wisdom. He is a moralist who believes his good intentions are all that matter. Mr. Obama, I must tell you that results matter, and if you ignore economics you get the worst possible unintended results. If you had any sense (which I am now sure that you do not) you would not publicly ignore the consensus opinion of economists.
This entry was posted on August 3, 2008 at 5:18 pm and is filed under Questions for Obama, Socialism. You can subscribe via RSS 2.0 feed to this post's comments.
Tags: NPR, Obama, Oil Windfall Profits Tax
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August 4, 2008 at 3:52 pm
A Windfall Profits Tax impacts more than the oil companies.
There are hundreds of thousands of people who are royalty owners. The average well in the USA produces something like 10 barrels per day. Under a Windfall Profits Tax scheme, these royalty owners will see their monthly royalty checks reduced 50% or more.
Additionally, the Oil Producing States impose a production tax on the oil produced in their state. Under a Windfall Profits Tax scheme, these states will see a reduction in their production tax income of 50% or more.
Those of us who oppose Obama and his Windfall Profits Tax scheme need to mobilize the hundreds of thousands of royalty owners and the tens of millions of people who live in the oil producing states.
These people need to understand that in no uncertain terms a Windfall Profits Tax will be a big hurt upon their income.
August 4, 2008 at 3:59 pm
Larry,
Thanks for your input. In my view it is more important to mobilize voters against Barack Obama rather than against any specific proposal he makes. His instincts and ideology are the problem.