Oops! Members of Congress are belatedly realizing that when gas prices get high, citizens no longer ignore the massive tax breaks for companies making record profits.
In the typical scurry for scapegoats when faced with a tough policy decision, both Democrats and Republicans are looking to revoke massive tax cuts given to the oil and gas industry in the most recent energy bill.
So what? We'll get some of that cash back to pay down the debt or shoot some Iraqis.
Or, instead of saving the cash, let's just spend it. It's an election year, so we'll give every American a $100 gas rebate from the federal government.
Whoa! As exciting as $100 is, let's look at the original point of energy policy - a secure, stable supply of fuel for the American economy. How do these policies measure up:
1. Tax breaks for oil companies making record profits: D-. True, greater supply would help reduce prices, but a number of scientists and geologists argue that increasing supply any further isn't even possible.
2. Taking back the tax breaks for tax cuts: F. When supplies are tight enough to drive prices this high, giving people more gas money doesn't send the right message.
Instead, Congress needs to develop an energy policy that addresses the root issue: oil supplies may have peaked and we have to shift to policies that shrink demand. For example, increasing CAFE standards to raise fuel economy, creating tax breaks for fuel efficient cars (but NOT hybrid SUVs), or a bigger gas tax.
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