Economic Combo Pizza Relieves Gas

A Windfall Profits Tax will not increase the cost of gasoline at the pump or decrease the supply of oil.  And such a tax with a combination "stimulus" type rebate program is the proper address to the current problems and dislocations caused by high gasoline prices.  The Windfall Profits (sur)Tax  of 50% of profits so long as the per barrel price of oil exceeds $80 would provide a minimum of $40 per month to the two earner family (probably more like $50).  Please recall that the stimulus rebates phase out at higher incomes and that is part of the design of a proper stimulus.

Such a tax and redistribution would allow the folks on the low end to still get to work while those at the top, who insist on wasting fuel, will be providing a subsidy.  Those in the middle will still continue to change their driving habits just as they are doing now.  We should see this as a "soft landing" for an American economy far too dependent on oil.  We must both change our habits and develop new energy sources.  But there is really no need for our current train wreck.

Ask yourself who actually owns the common natural resources.  Rightful ownership comes into being in the hands that create that which is owned.  Oil is not created by the labors of individuals and thus, like air and water, and the oceans, it is the common birthright of all.  The Alaskans are not the owners of the North Slope oil, and Louisiana and Florida are not the owners of the offshore oil close to them.  Such resources are owned equally by all members of the sovereignty. The oil companies, through their lease arrangements take an ownership position in this oil.  A windfall profits tax simply reclaims some of that which has been inappropriately taken.