Motivation for the Oil Barons

In a tread entitled "BEFORE Trying To Simply Hike the Fuel Tax . . ."
Day Brown <daybrown@[EMAIL PROTECTED]
> wrote:
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Now, in this case, I dont blame the oil outfits for not looking for new 
sources of alternative energy. They know how to make money off oil, and 
are not keen on some new technology to compete with it. Very well. Tax 
the bastards to motivate them. Profits are positive re-inforcement, 
taxes are negative re-inforcement. They both work.
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The Taxation of oil company profits is in fact a tax on rent that will not
be passed to consumers.  If the oil companies could get higher prices they
would already be doing it.  And so long as the proceeds of the tax are
disbursed to the general public it won't make any difference anyway. So a
100% surtax on oil company profits in excess of X simply redistributed as
a quarterly "stimulus" in the same form as the present "stimulus" will do
very nicely. As oil prices increase driving profits above X then the oil
companies get the wrench. That is some serious motivation to help in the
effort to reduce the prices.

As the definition of X can become quite complicated, it is better to
simply apply a lower tax rate to the entire profit. Say 50% so long as
oil prices remain above $80 per barrel.


-- 
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of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
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