Windfall Taxes On Oil – Good Or Bad?
Friday, October 31st, 2008Now that all the major oil companies have declared their huge, record profits, the consumers and politicians at large are clamoring once again for windfall taxes on those profits. So, is this what we truly believe is equitable?
Look at it this way. Who was it that provided the oil companies with that profit? It was us. Believe me, I despised the $4+ gas prices as much as the next person. But, all of us are responsible for still using the gas and oil they were selling. We only have ourselves to blame. If we had been willing to push the idea of energy conservation and the use of renewable energy sources, we wouldn’t have found ourselves so dependent on oil in the first place. We ourselves have supported the model for so long and now we have to pay the piper.
When the firm you work for has an exceptionally good year and you really did well for your part and they give you a really nice bonus, would you be ok if the government came and added an additional tax since your personal profits are that much higher? For all you US citizens out there, would it be fine by you if the government put an additional tax on you because your yearly personal profits are five times more than billions of other people around the world and then they distributed that money to those poorer people, simply in the name of fairness? I didn’t think so.
I don’t think government’s place is to “make everything fair” according to our own desires. Like I tell my kids, “Life isn’t fair, get over it.” We have the ability to keep gas prices low and to induce further research and development of renewable energy – it’s called the law of supply and demand.
Instead of asking governement to get involved, we all need to commit within ourselves that we will find ways to reduce our share of the demand for oil. Prices will remain low and oil companies, always in search of profits will continue to invest in other technologies and services – most likely renewable energy. So quit complaining and do something about it.
