Windfall Profits and Pelosi's Myths

Obama has proposed a windfall profits tax. This is not the first time we've heard this. Hillary Clinton also said once she wanted to go after the oil companies. Let's penalize free market capaitalism. It's been tried before, and while it might make some folks feel good, it didn't work then, and wouldn't work now.

This is what the Economist had to say recently:

Mr Obama says that he would tax oil firms for “windfall profits”, and give motorists a rebate ($1,000 for families, $500 for individuals). Such a populist gesture might go down well with voters, but imposing a windfall tax would cause uncertainty in the oil industry and divert funds from investment in production of more oil, thus contributing to higher prices. Another suggestion, to release some oil from the strategic reserve, would bring a temporary benefit at best.

Of course, Obama and the rest of his ilk really do believe in income restribution, so that's no surprise. Take ExxonMobil. It's sales are staggering, some $116 billion last quarter. Its profit margin was about 9.7%. Over the last 10 years, Exxon has averaged 7.7% profit, from a low of about 4% to a high of 10.4%.

Everyone is yelling about huge profits, and they may be historic, but then again so is the price of oil, due to the shrinking spread between supply and demand and the speculation it causes in the markets. But the dividends these compaines are paying are equally outstanding. Exxon, Chevron, BP, Total and Royal Dutch and ConocoPhillips paid nearly $43 billion in dividends last year. And they've been buying back shares, which increases stockholder value (if you pay $1 billion in dividends, but there are fewer shares, each shareholder gets more of the dividend pie).

Regular people, like you and me, own these companies, either directly as stockholders, or through our retirement accounts, 401Ks, insurance programs, state retirement funds, etc.

So this is not such a bad deal. If it's so horrible that Exxon make 9 percent profit, why is no one yelling about other companies, like Microsoft, which makes nearly 30 percent profit. Where's the outcry?

So Obama and Pelosi have a no-drill policy. No debate allowed on the house floor. Turn off the lights, and let's go home.

Then during the weekend, she was interviewed by George Stephanopoulos. She continues with her ignorant myths. Anyone with the ability to read, investigate and think clearly can see that developing more of ALL of our resources is the answer short-term and long-term.

But Obama and Pelosi are elitists and don't care about you. Let's save the planet, while destroying America. That will solve all of our problems.