Friday, August 01, 2008

Second Economic Stimulus c/o Big Oil

The first economic stimulus package was a bad idea (borrow from yourself and pay it back at a higher rate in the future because we all need more stuff). The second or latest economic stimulus package supported by many Democrats include Barack the messiah, is free money for everyone paid for by the oil companies.

Obama called for energy rebates of up to $1,000, five years of a windfall profits tax on oil companies and $25 billion to replenish the highway trust fund.
Obama's new $50 billion economic stimulus plan
would use a windfall profits tax on oil companies to finance $500 tax rebates and aid to state governments for energy cost assistance, school construction and infrastructure building.
This comes right on the heals of record oil company profits. To the masses, this volume of profit does not feel right. Why should these companies profit when we pay such high prices at the pump, for our home heating oil, etc.?

Oil companies are in business to make profits. Should they be penalized for being successful? Remember, half of those profits go to the government in the form of taxes. (Too high of a percentage in my opinion.) Yet, despite record profits, the major oil companies' stock prices have fallen since the announcement. Why? Their profits were less than expected, production is slowing, costs are increasing impacting margins, and demand is starting to decrease.

Promising another "free check," this time paid for by oil companies, to the families of America is pure pandering. It is terrible economic policy. It is preying on economically ignorant Americans, which unfortunately is too large of a body.

This man, along with most politicians, are unqualified to lead this country. They pretend to lead the largest economy in the world yet would fail at managing any real business that was not a law firm.

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