As a rule I am not a fan of the Des Moines Register. Like many of my conservative brethren, I find their editorial selection woefully biased and often unhelpful to anyone trying to “wade” through an issue. Today though is an exception to the rule.
In today’s issue (November 24, 2008) a guest writer named Andrew Moylan (government affairs manager for the National Taxpayers Union) provided a highly informative and compelling discussion of the potential tax consequences President Elect Obama’s energy policy may have for our struggling nation.
Mr. Moylan correctly identifies that the Obama plan for energy and the United States as a rehashing of the same failed ideas of the last 30 years, and plan that likely spells disaster if implemented.
In support of his disagreement with President Elect Obama, Mr. Moylan cites to the following key arguments:
1. The much discussed and hyped windfall profits tax on oil companies is only going to result in higher prices passed onto the consumer. This is compounded by the reality that oil companies pay almost twice in taxes what they reap in profits.
2. The windfall tax was already attempted in the 1980s and not only were prices raised but the amount of imported oil increased. There may also be no windfall to profit with the current bottoming out of oil prices. With the shockingly low price of oil right now, any major gains may be consumed by what is surely an abnormal drop in the price of oil.
3. As President, Obama may also restore the ban on off shore drilling. Not only does this drive the price of oil down due to supply and demand, but 50% of those who voted for him are opposed to the ban.
I knew there would be a time to sit back and say “I told you so” to those who believed Obama was actually something new, actual change; I had no idea I would get to say so before he is even sworn in! More importantly, it is not just the fringe right making this argument. The point is now coming from a published opinion piece in the Des Moines Register. If this article can make it into that heap of mediocre journalism, there has to be something to it.
The bottom line here is that not only is Mr. Moylan quite correct in his reasoning why the Obama energy plan my cost us dearly in taxes, but the back lash of this clearly ill-conceived electoral result may be felt earlier than originally suspected. This is a bitter sweet reality that I can only hope does not cost the nation too dearly and is something we learn from and remember four years from now.