In keeping with my prior post, about the callous illogical shown in one of the Times’ most recent articles, I’d like to highlight Obama’s insistence on a “windfall profits tax” — another “bright” idea showing a rather typical Democratic refusal to recognize cause and effect, not to mention a willful refusal to acknowledge historic evidence:
You may also be wondering how a higher tax on energy will lower gas prices. Normally, when you tax something, you get less of it, but Mr. Obama seems to think he can repeal the laws of economics. We tried this windfall profits scheme in 1980. It backfired. The Congressional Research Service found in a 1990 analysis that the tax reduced domestic oil production by 3% to 6% and increased oil imports from OPEC by 8% to 16%. Mr. Obama nonetheless pledges to lessen our dependence on foreign oil, which he says “costs America $800 million a day.” Someone should tell him that oil imports would soar if his tax plan becomes law. The biggest beneficiaries would be OPEC oil ministers.
The WSJ from which the above comes is called “Windfall Profits for Dummies.” I have a bigger question: Are dummies attracted to the current incarnation of the Democratic party, or does being a member of the Democratic party make you dumb?