May 07, 2008

NY Times Calls For Higher Gas Prices -- Democrats Oblige

So much for concern for "the little guy" -- the editors of the "paper of record" want us to pay more at the pump.

And for government to take a greater share of the cost in the form of taxes.

It was bad enough when Senators Hillary Rodham Clinton and John McCain decided to engage in some petty pandering by calling for a suspension of the federal gas tax over the summer. What they suggested would reduce needed tax revenues and hamper efforts to combat global warming. And it would fail to deliver lower prices while giving oil companies more money. But neither senator is actually running the country, so it might be tempting to chalk it all up to campaign pandering.

Unfortunately, their demagoguery is growing into a real problem, setting off a chain reaction of “me too” proposals across the country to suspend state gasoline taxes, which tend to be much larger than the 18.4-cent-a-gallon federal levy. If the pandering spreads, it would go a long way in setting the nation’s energy strategy in precisely the wrong direction.

Standard NY Times rhetoric -- a Neanderthal-like "Tax cut bad -- tax increase good" editorial if there ever was one. And if there is any doubt about the intent of making the American people suffer further at the pump, they make it explicit at the end of the piece.

Americans must find ways to curb their use of fossil fuels. That will require higher, not lower, prices for gas — even during a presidential campaign.

But don't worry -- the Democrats are on board to make sure that your gas prices go up substantially, along with government revenues.

Senate Democrats on Wednesday called for a windfall profits tax on oil companies and a rollback of $17 billion in oil industry tax breaks as part of an energy package. The proposal also would impose federal penalties on energy price gouging and calls for stopping oil deliveries into the government's emergency reserve.

* * *

Democrats characterized the proposal as attacking "the root causes of high gas prices," although it wasn't clear how today's high oil costs _ set in a global market _ or gasoline prices edging toward $4 a gallon would be appreciably affected.

Remember, of course, that oil companies don't pay taxes -- they pass such taxes along to consumers in the form of higher prices. These new, government-imposed, costs-of-doing-business always get passed along to the consumer -- and will until and unless Congress figures out a way to repeal the laws of economics (which it can do as soon as it finishes repealing the law of gravity). Remember, too, that those same laws of economics tell us that the higher gas prices brought about by this legislation will be accompanied by higher electricity rates, higher food costs, higher clothing costs and a host of other increased expenses for consumers as the increased cost of gasoline and other petroleum products ripples through the economy.

And since the Democrats are adamantly opposed to increasing the supply of oil -- especially of domestic crude -- they remain adamantly opposed to allowing oil production in ANWR or off-shore anywhere but in the Texas/Louisiana region of the Gulf of Mexico.

Most amusing is the proposed Democrat effort to apply anti-trust law to OPEC -- a cartel of sovereign governments. Given that American law rally doesn't apply to those governments, this is just window-dressing and grandstanding.

But then again, since when have the Democrats ever been about solutions to real problems?

Posted by: Greg at 10:30 PM | Comments (104) | Add Comment
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