LETTER TO THE EDITOR: President Biden, higher taxes won’t lower gas prices
Published 5:38 pm Wednesday, November 2, 2022
During his Oct. 31 address, President Biden accused oil companies of “war profiteering” and threatened a “windfall profits” tax on the industry in order to lower energy prices. But, blaming the oil companies for our energy crisis is akin to blaming “the baby on the doctor who delivered it.”
President Biden need look no further than his own mirror to find the culprit responsible for the situation in which we now find ourselves.
His first day on the job, Biden shut down the Keystone XL Pipeline, canceled future federal land leases for drilling, suspended oil and gas leasing in Alaskan ANWR areas, resurrected the “Waters of the United States” rule which increases barriers to energy products and created stifling regulations with respect to oil and gas refining.
Now, he is proposing a complete non-starter: increasing oil industry taxes will raise fuel prices, not lower them.
President Carter tried a windfall profits tax in 1980, only to see domestic production drop and fuel prices spike. As someone who was around at the time, I vividly recall the gasoline rationing and long lines at the pumps.
We need pragmatic solutions that will actually reduce energy costs long-term as we head into colder weather in the coming months.
President Biden should work towards boosting domestic production to increase our energy supply rather than pointing blame at the very sector that can help.
The first thing you learn in Economics 101 is the effect that supply and demand has on price … high demand plus low supply equals higher prices.
Mr. President, swallow your pride and reverse the crippling policies you created.
They don’t work.
Gerald W. Poplin, Ph.D.