The Democrat leadership in the Congress, even more unpopular than President Bush, have managed to push through very little legislation. There was the minimum wage increase so all entry level teenagers will have a couple more dollars in their pocket. That's been about it for substance.
Thus, the low approval rating.
Remember when the Democrats flooded into office in 2006? They promised to end all corruption, no more earmarks, long work day hours in session, ending the Iraq war, provide peace and harmony all around. And, they said, as Nancy Pelosi did, they would have a "common sense" energy plan to ease rising prices at the gas pump. Wonder what happened with that plan?
Finally, Pelosi and company have come up with a plan to tax success and stop production of domestic oil markets. They intend to present legislation to the President that will impose a 25% tax on windfall profits of oil companies. That's right. As Democrats do, they think the way out of the rising cost of energy is just simply tax the producer.
Oil companies pay 46 cents tax for every dollar of revenue. The profit margin is just about 10%. Surprised? That profit margin is actually lower than most industries.
According to an opinion piece written by Senator John Cornyn, D-TX, at Townhall, the Democrats have a plan to tax, sue and investigate our way out of the problem. It is completely mind boggling to even imagine. Didn't they learn a thing from the 1980's? Windfall tax was enacted then and what happened? Domestic oil production sharply decreased by about 1.2 billion barrels between 1980 and 1986 and the tax drained $38 billion that the energy sector could have used in new production and exploration. Or for alternative fuels. Who do you think is leading the way in new technology and new alternatives for fuel? That's right - the oil companies. The dreaded, evil 'Big Oil'. Not Al Gore and his fellow hedge funders making millions in speculation in 'green' companies.
Two disclaimers: I am an official 'Blogger for Cornyn' as a part of his re-election campaign, and my husband is an engineer in the oil drilling industry. Take from that what you will.
Pelosi and Company want to sue OPEC to force them to release more oil into the market. This is so cynical of an idea it is laughable. The Democrats know this is just plain silly but they present it as a part of a plan of action. No one thinks OPEC would pay any attention to such nonsense. And, as Senator Cornyn points out, if the far left is so concerned about our standing in the international community, why would they deliberately support such a poke in the eye to an organization from whom we negotiate oil sales?
The topping on the cake is the call for an investigation form the Federal Trade Commission concerning possible price gouging. Never mind there have been dozens investigations thus far and absolutely none have produced any such evidence, let's just devote time and resources to the process again. Henry Waxman would be such a happy man.
So, instead of increasing domestic production, building new refineries in our own country, and supporting less foreign imports of oil, we will see gas lines, rationing, a halt to refining and production and yes, higher prices. Not lower prices. Every time the federal government has stepped into the private sector and over-regulated, failure has ensued.
Senate Republicans have introduced the American Energy Production act to bring down gas prices. This legislation would allow access to 24 billion barrels of oil - enough supply for America for 5 years without foreign imports. Also included would be exploring in ANWR and the Outer Continental Shelf.
Taxing success, as the Democrats play book continues to highlight, is a loser for all Americans. Obama continues to pander to Americans by promoting such stealing of corporate profits. We are not a socialist nation. Yet.
The free market thrives on supply and demand. The free market thrives with less government strangleholds.
Where was all the Congressional concern when the price of oil was $8 a barrel in the middle 1980's and those working in the industry were losing jobs?