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Wednesday, August 29, 2007
David Strom :: Townhall.com Columnist
Prices Too High? Raise Taxes!
by David Strom
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For most of us, life is pretty simple. If there isn't enough of something and prices skyrocket, the last thing we would think of is limiting the supplies even more and raising prices by slapping even higher taxes on it.

Obviously, if you think this way, you aren't a politician.

Politicians look at the current oil price crunch as an opportunity—but not to increase Domestic exploration, promote free-market investment in alternative fuels and research, or let the market work as it should.

No, this is of course an opportunity to raise taxes on oil companies and oil refiners-who will have to pass these costs on to you in higher prices. Not only will this raise prices even higher, but it will ensure our dependence upon foreign oil by limiting domestic oil exploration in the United States.

Price too high already? Congress and many State Legislators want to increases prices even more.

Most people don't know this, but the United States has huge oil reserves that are off-limits to oil exploration and production. Politicians may blather all they want about energy independence, but no amount of Ethanol or "biofuels" will come close to meeting Americans' energy needs in the foreseeable future. Even if we required all fuel in the United States to be 10% Ethanol- an almost impossible goal to meet while keeping our food supply (and the world's) cheap and abundant,--90% of the fuel we would consume would still be fossil fuels. And that is just for cars!

America has become and is dependent so heavily on foreign sources of energy because politicians and radical environmentalists have stopped every serious attempt to produce more energy in America. As supplies get tighter and out of our control, prices skyrocket. And no wind farm alone will reverse this trend anytime soon.

We can't build nuclear power plants to supply electricity, so natural gas prices go through the roof as more of it gets used to produce electricity. We can't drill for oil in Alaska, or off the coasts, or just about anywhere these days (unless we started decades ago), so we increasingly turn to foreign sources to supply our needs.

And who are these "trading partners" we depend upon? All those fine friends we have in the Middle East such as Iran, our good partner Hugo Chavez in Venezuela, and of course the Saudi's who are straddling the fence in the war on terror to keep their creaky regime alive.

So what are liberals proposing? Limiting oil exploration here in the United States, and slapping huge tax increases on oil companies. Honestly, that is the energy policy they propose. Continued...

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About The Author

David Strom is the President of the Minnesota Free Market Institute. He hosts a weekly radio show on AM-1280 "The Patriot" in Minneapolis-St. Paul, available on podcast at Townhall.com.

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Cam
I have no problem paying taxes, either. But the notion that the solution to EVERY problem, or the idea that taxes MUST increase every year, is laughable.

Say my family is a microcosm of the government. I cannot go to my taxpayers (i.e. my employer) every year and say, "Gee, spending sure has increased this year and I really need more money to get a new car, pay off bad debts, or fancy up my home. Give me more money." If I did, I'd either be laughed at or fired. Probably both.

Because it doesn't work at my job and it shouldn't work in government policy, either.

yawn
Cam: "Half the time you conservatives are telling us we're "anything goes" hippies and the other half you're telling us we're Nazis trying to run everyone's lives. Pick one."

I vote for "Nazis trying to run everyone's lives."

Anyone else here notice the irony, Nazi is short for National Socialist in German?

"When I was younger, I read in my Boy Scout Handbook that it was my responsibility as an American citizen to pay taxes."

LOL

no one here has suggested to shrug off taxes owed to the government. the problem occurs because liberals think that, for instance, schools are failing, and therefore we need to raise taxes so we can throw more money at the problem. it's unbelievable. could you imagine a company in a competitive market doing this? "our product sucks! give us more money." they'd be out of business in a week! a day, likely.

insanity is doing the same thing repeatedly, expecting different results. we've agreed by electoral vote, in the past, to higher taxes in the name of overall improvements. the taxes came, but if anything the government became more bloated, meddlesome, and useless.

this is why i'll never again vote for a Democrat, and will only vote for a Republican/independent (small "i") if they are pro- low taxes / small government. insanity is just not my strong suit.
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