Posted by
txag007 on Tuesday, April 08, 2008 10:17:53 PM
I noticed on Hannity & Colmes last night Barack Obama is running a campaign add in which he promotes the idea of a “Windfall Profit Penalty” for oil companies. There are several items related to this of which one should be aware before casting a vote in this election.
First, and as I pointed out in my last post, the 2007 profit margin of the major oil companies was not excessive. At 8.3 cents of profit for every dollar in sales, it was in line with most businesses.
Second, and probably most importantly, one must decide whether or not the government bears the responsibility in a capitalistic society to determine when the profit produced by a private business is “too much”. Keep in mind that if they can do it for the oil industry, they can do it for your business as well.
And finally, the Windfall Profit Tax has historical precedent. It’s already been attempted. Judge for yourself its effectiveness.