Obama has decided that the answer to the current energy prices is to tax the windfall prices of the oil companies. There are several problems with this:
1. The oil company will pass these taxes onto the consumer, which will inflate gas prices even more.
2. The taxes would go to the government, and Congress will decide how it’s spent. Since when is Congress not corrupt?
3. Because traders know the above is true, the stock price on oil companies will fall, hurting the portfolios of many Americans, including retirees and senior citizens.
4. Oil companies know that unless they invest in alternative forms of energy, their companies will fade away when oil dries up. These windfall profits help them conduct research as well as plan for the rainy days of the future.
5. Without research going on among competitive oil companies, research falls to the government. The government will be plagued by researchers who make erroneous claims just to get funds, red tape, bureaucrats and favoritism.
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