Democrats’ Energy Plan: Tax, Sue, And Investigate by Sen. John Cornyn

Over at TownHall.com, Sen. Cornyn’s column cuts right to the chase about current energy policy and the effects such policy has had on us:

More than two years ago, now-House Speaker Nancy Pelosi and her Democratic colleagues promised what they called a “common sense” energy plan to bring down prices at the gas pump. Since that time, the average cost of a gallon of gas has soared from $2.33 to $3.62, an all-time high.

That’s it in a nutshell. That is the grand result of what a Dem-controlled Congress has brought to the American people.

So, what are the new plans? Read on:

A central component of the Democrats’ energy bill is to increase taxes on U.S. energy companies. This is almost bizarre. Democrats have clearly not learned the lesson from the 1980s when the windfall profits tax—a tax on oil produced in the U.S.—was first enacted.

We know now as a matter of certainty that this tax had the opposite effect than what was intended. It led to lower domestic oil production—not lower prices at the gas pump. In fact, the nonpartisan Congressional Research Service estimates the windfall profits tax decreased domestic oil production by as much as 1.2 billion barrels between 1980 and 1986.

Not only did it result in decreased production, but the taxes were simply passed on to the consumer in the form of higher prices. Further, if these new taxes are enacted, anyone who has a 401k with investments in Oil Companies will see the size of their retirement checks reduced as a result.

In addition to other idiotic ideas such as bringing back the Federal Tax Commission, the Dems have this little gem in store for us:

The final component of the Democrats’ energy plan is to sue OPEC to force them to release more oil in the market. This is clearly an exercise in futility, and I suspect my Democratic colleagues know that. The idea of threatening foreign governments, and particularly our Middle East allies, is particularly ironic coming from the same Democrats who have routinely accused the Bush Administration of damaging our relationships with other nations. It is also ironic to sue other countries in an effort to get them to produce more oil, while at the same time preventing production here at home and making us even more dependent on foreign oil.

Whoo boy! I wish all Republicans and Conservatives had the cojones to tell it like this.

You can access the complete column on-line here:

Democrats’ Energy Plan: Tax, Sue, And Investigate
Sen. John Cornyn
TownHall.com
May 7, 2008

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