Thursday, June 21, 2007

$6 gas? The Senate Strikes Again

Jim Wooten castigates the Senate's new energy bill coming our way. Congress hopes to solve high energy prices by implementing heavy-handed, anti-market legislation (much like it now seeks to "solve" illegal immigration). Wooten cites a Heritage Foundation study suggesting that a gallon of gas will cost as much as $6.00 by 2016. This might be stretching the point just bit (who really knows what crazy new thing will happen before then?), but the direction of the price increase seems about right: up, up, up. Their clever solution? Tax oil companies (who saw that one coming?)...and, use the money to artificially support alternate energy sources (like ethanol), thereby raising the cost of both gas AND food. Yee-hah!

If Congress (and states) were really interested in lowering the price of gas, all they need do is roll back taxes on gas. These taxes exceed the profits made by "greedy" oil companies. One more step would finish the job: end all the foolish environmental restrictions on building new refineries, off-shore drilling and drilling in Alaska. Instant price decreases AND leverage against Islamo-fascist oil barons. Which sounds better to you?

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