Wednesday, June 11, 2008

Townhall.com::The Energy Crisis: Where We Are and Where We Need to Go::By Senator Kay Bailey Hutchison


http://townhall.com/columnists/SenatorKayBaileyHutchison/2008/06/11/the_energy_crisis_where_we_are_and_where_we_need_to_go

The Democratic nominee for President, Senator Barack Obama, is eager to burden oil producers with a "windfall profits tax" - a euphemistic phrase that implies an undue or undeserved "profit." As Alan Greenspan once said, "Whatever you tax, you get less of." By raising taxes, and thereby, reducing the incentives to produce energy, the consequences of this policy are obvious: we will end up with a smaller supply of domestic energy. But don't just take my word for it; take a look at history. In 1980, Congress passed a "windfall profits tax" and the consequences were devastating. In the six years following that levy, domestic oil production dropped by 1.26 billion barrels and imports of foreign oil rose 13%. The "windfall profits tax" was an unmitigated disaster, which is precisely why it was repealed. We shouldn't make that same mistake again.

Instead of searching for scapegoats, we should be striving to create a bold, comprehensive plan for America's energy security in the 21st century. Specifically, this will require overturning literally decades of Big-Government regulations that have prevented energy companies from tapping America's bountiful natural resources.


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