Still don’t believe that Obama is clueless about how economics works in the real world? Check out
Windfall Profits for Dummies Here he is rightfully taken to task for proposing a “windfall profits tax” as a way to lower gas prices…
You may also be wondering how a higher tax on energy will lower gas prices. Normally, when you tax something, you get less of it, but Mr. Obama seems to think he can repeal the laws of economics. We tried this windfall profits scheme in 1980. It backfired. The Congressional Research Service found in a 1990 analysis that the tax reduced domestic oil production by 3% to 6% and increased oil imports from OPEC by 8% to 16%. Mr. Obama nonetheless pledges to lessen our dependence on foreign oil, which he says “costs America $800 million a day.” Someone should tell him that oil imports would soar if his tax plan becomes law. The biggest beneficiaries would be OPEC oil ministers.
Hey genius, in the real world, when you slap an extra tax on any commodity, the price goes up, not down!