NOTE: Originally posted by Morgan.
On Monday, Governor Ed. Rendell gave a press conference at a local gas station and ranted about how unfair the high gas prices were and called on President Bush and Congress to create a windfall profits tax on oil companies. The story was outlined in the Harrisburg Patriot-News.
Gov. Ed Rendell yesterday called on President Bush to work with Congress to create a windfall profits tax on oil companies and to start collecting royalty payments for oil drilling on federal land.
“These profits are ungodly, there is no excuse for this,” Rendell said. “Even the Republicans in Congress are talking about some kind of windfall profits tax.”
Rendell wants money raised by such a tax to be rebated to American motorists based on the annual mileage they drive.
He also claims contractual “flaws” allowing companies to drill on federal land without paying royalties have cost $65 billion in lost revenue.
Rendell said gasoline prices have jumped by 100 percent, from $1.51 to nearly $3, since he took office three years ago.
That’s some good thinkin’ right there, Eddie! Let’s tax the oil companies so they can turn around and raise their own price the amount of the tax.
I’m not happy with the price of gas right now. No one is, but proposing a new tax is not going to solve the problem, but exacerbate it. Whenever a company that sells a product is subject of a new expense whether it is taxes or just higher priced materials, they just pass the costs on to the consumer.
If the politicians were honest about their intentions to reduce the price of gas, they would lower the state and federal taxes on gas. Right now, the tax on gas in Pennsylvania is 45.1 cents per gallon. With an average of $2.95 per gallon, the government is currently taxing gas at 15%.
You would think during the times when everyone is getting hit hard by the gas prices, they could reduce their taxes and alleviate the hardship of their constituents. Unfortunately, they’re going to do the political thing and point the finger at someone else.