Do The Math! The Cost Of Obama's Proposed $1,000 Per Family From Windfall Profits Tax!

I am all for sound energy policy and will admit that government entitlements are always appealing at first glance. That is, until you realize the costs of those policies. Over the past three days Senator Obama has taken pandering to a new level, offering what I consider to be a 'bribe' by telling American families that his Windfall Profits Tax would be used to provide a $1,000 per family rebate. Despite the historical failure of such policies, somehow they continue to draw appeal from those who don't care about the cost such programs.

So how much would Obama's $1,000 per family cost the oil companies??

Consider this, according to the Obama Campaigns statistics regarding his proposed working family tax credit, the credit would affect around 150 million US workers or about 80 million families. As such, you can assume that his $1,000 per family or $500 per individual "Energy Rebate" would also affect the same 150 million workers. So now lets do the math (in terms even Obamabots can understand):

A $1 rebate would cost $150 million
A $10 rebate would cost $1.5 Billion
A $100 Rebate Would Cost $15 Billion
A $500 REBATE WOULD COST $75 BILLION

Now, according to Obama this rebate would be provided through his, Pelosi, and Reid's Windfall Profits Tax. Sound Great, Right?

How Much Did Oil Companies Make in 2007?

Consolidated Net Profits Of Big 5: $120 Billion

Hmm...Now you're may have to get a calculator out to figure the exact percentage, but how exactly is Obama going to pay for his $75 Billion Rebate??

This is just the incentive oil companies need??

So Which One Is It? Do we impose a 62.5% tax on Oil company profits, in which Institutional and individual investors dump the stocks; relegate them to penny status; bankrupt the industry; and cause an insta-depression? Or... Does the government pick up the tab, causing a record budget deficit to balloon further and destroying the promises of government investments in alternative energy?

Either way, this is what occurs when pandering trumps sensibility.

J Brown
August 4th, 2008
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