Posted by: al66888 | June 21, 2007

Ready to pay $6 at the pump?

Since all 14% of us love what Congress is doing, let’s have them take a crack at energy, I hope they do just as well as they’re doing with immigration.  Their new plan the oil crises involves no drilling, no refining, and very little in the way of nuclear energy.    Like I wrote earlier, who needs oil refineries, not the US!  Instead, they are going to continue to drive inefficient, politically correct solutions down our throat which are going to wind up costing us millions!  Here’s one of my favorite lines of the article

higher gas and food prices, to new taxes and to forcing consumers to pay for high-cost “renewable” energy sources — solar and wind, for example — that are to energy independence what bicycle trails are to traffic-congestion relief.

How true, how true. In a perfect world we’d all ride our bikes to work, or at least carpool with 3 other people to our job. But the fact of the matter is, we all work strange schedules, and very few live close enough to work to actually bike. I know I don’t, and I work for a small start up company that only has 3 guys in our office. So I couldn’t even carpool with 3 others if I wanted too. And has anyone been to the food store lately? How much has your food prices increased- your milk, you meats, etc. Well, if you are using a food supply for fuel, the demand and price will go up (simple supply and demand) meaning it’s going to cost farmers more to feed livestock and get their products on the shelf.

The bill proposed is called the Renewable Fuels, Consumer Protection and Energy Efficiency Act of 2007. Once again, just another nice name to keep you thinking that these guys are doing right by me.

The legislation “could result in significantly higher prices for gasoline consumers,” according to Heritage Foundation researchers. “A review of S. 1419, including the just-completed section on tax changes, reveals that the bill could increase the price of regular unleaded gasoline from $3.14 per gallon (the early May national average) to $6.40 in 2016 — a 104 percent increase,” write Heritage Foundation researchers William W. Beach and Shanea Watkins.

“Gas consumers can expect to pay between $3.16 and $3.79 a gallon for gas in 2008 after adding in the estimated impact of the Senate energy bill. By 2016, all states can expect gas prices in excess of $6. As a result of S. 1419, consumers would spend an average of $1445 more per year on gasoline in 2016 than in 2008,” they write.

The committee is proposing and estimated 29 Billion (yes, that’s with a B) on Big Oil. It also calls for sharp increases in the uses of ethanol, which I’ve already blogged about being not only inefficient but also impractical. Let me write this again, in simple math, companies do not pay taxes- consumers do:

Here’s my simple math again. If I sell something and make a $1 profit and have to pay $.30 on the dollar to taxes, I would be left with $.70. If congress tells me I now have to pay an additional $.30 or $.60 total- do you think I as the company am paying that? Do you think I would go from making $.70 to $.40. And even if I did, do you think everyone in my company keeps their job now that I’m making almost 1/2 the profit per sale I did before. What I would do instead is sell my product for $1.30, and then pay my taxes of $.60, and have a profit of $.70. Gas is a commodity, it’s not a luxury item, people have to buy it whether they want to or not. So who’s paying that extra $.30, that’s right, Joe Consumer, not Joe Corporation. So next time you hear a politician talking about going after the corporations, beg them to stop!

You can read the full article here, and there is a link to the Heritage Foundation’s finding.

And somebody tell Jim that the common sense conservative is my thing! jk

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