Wednesday, August 6, 2008

Thought on Obama's Energy checks to consumers

Barack Obama is proposing, as a part of his energy plan, to send out energy checks to consumers for $1,000.

Here's a few issues I have with this:

  • Why is Senator Clinton's plan to have a gas tax holiday between Memorial Day and Labor Day called "a gimmick, no real solution" by Obama, when this energy rebate is the same thing. Pot calling the kettle black, Mr. Community Organizer?
  • By adding a 'Windfall Tax' to oil companies to pay for this won't solve anything. Even though "sticking it to the oil companies and drug companies" is a nice liberal talking point, they fail to look at the implications:
  1. The more oil companies are taxed, the more this gets passed on to the consumer. This is economics 101. If you own a company and your costs rise, of course you will raise your own prices to make up for it.
  2. These evil oil companies who are making billions each year are the average American. They are the shareholders in these companies. How many millions of everyday Americans portfolio's would be affected by having our government continuously "stick it" to the oil companies?