Saturday, August 23, 2008

Obama channels Kark Marx

From The Lighthouse -- the Independent Institute's weekly email:

Obama's $1,000 Rebate

To ease the pain of high gas prices, presidential hopeful Barack Obama proposes granting consumers an "emergency" $1,000 tax rebate--financed by a "windfall profits" tax on oil companies. Unfortunately, neither of these legs will support lower gas prices, according to Independent Institute Adjunct Fellow Art Carden.

"When taken at face value, Obama's plan to offer $1,000 tax rebate is not necessarily objectionable, but it will only increase our demand for gas," writes Carden in a new op-ed. "And of course, it will increase gas prices."

"Curiously, Obama proposes fixing high gas prices by making it more expensive to supply gasoline," Carden continues. "He proposes taxing oil producers, who are precisely the people you don't want to tax if your end goal is to lower gas prices. On net, Obama's plan will subsidize gas consumption by taxing gas production.... All other things equal, it is a recipe for higher gas prices and greater 'pain at the pump.'"

"Obama's $1000 Rebate Plan Won't Work," by Art Carden

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