
 |
|
March 19, 2010
JWisdom.com Stewards of sacrifice
with Rabbi Sroy Levitansky (5 minutes)
Caroline B. Glick: Why Obama is waging war on Israel
March 18, 2010
JWisdom.com Love me not?
with Rabbi David Aaron (5 minutes)
Jonathan Rosenblum: Washington Throws a Tantrum
March 17, 2010
JWisdom.com How to perform a miracle
with Rabbi Yaakov Asher Sinclair (4 minutes)
Anne Bayefsky: Behind Obama's Dangerous Overreaction on Israel
March 15, 2010
JWisdom.com Moody, Grumpy, Irritable Children
with Sarah Chana Radcliffe (5 minutes)
JWisdom.com Manufacturing mediums
with Rabbi Sroy Levitansky (4 minutes)
Glenn Garvin: Conspiracy theories, why people believe them and how they spread
JWisdom.com For Yourself, Not By Yourself
with Rabbi Lawrence Hajioff (8 minutes)
Paul Richter: Biden promises 'viable Palestine' is in the offing
March 10, 2010
JWisdom.com How To Get A (Real) Life
with Rabbi Warren Goldstein ( EXTENDED EPISODE)
Paul Richter: Israel exerts soverign right to its capital as Biden looks on astounded
March 9, 2010
JWisdom.com Free To Be (Responsibly) You and Me!
with Rabbi Naftali Brawer ( 8 MINUTES)
David G. Savage: Supreme Court to rule on free speech in case of soldier's funeral
March 8, 2010
JWisdom.com Finding or Losing Yourself? Here's How!
with Rabbi David Aaron ( 5 MINUTES)
Steven Emerson: America must learn from the UK about the future of Islamist subversion
March 5, 2010
JWisdom.com The Limits of Eternity
with Rabbi Sroy Levitansky ( 4 MINUTES)
March 4, 2010
JWisdom.com Using Things, Loving People
with Rabbi Lawrence Hajioff ( 7 MINUTES)
March 3, 2010
JWisdom.com Grasping The Name of Your Life Game
with Rabbi Warren Goldstein ( 8 MINUTES)
March 2, 2010
March 1, 2010
JWisdom.com Whole in One
with Rabbi David Aaron ( 5 MINUTES)
Michael Muskal: Hillary meets with Israeli official, discusses gefilte fish dispute
Feb. 26, 2010
JWisdom.com A Biblical Secret for a More Powerful You
with Rabbi Sroy Levitansky ( 5 MINUTES)
Feb. 25, 2010
JWisdom.com The Second Most Important Question in Your Life
with Rabbi Yehoshua Karsh ( 5 MINUTES)
Seema Mehta : U.S.-Israel relations raised in California's Senate race --- by conservatives
Feb. 24, 2010
Feb. 23, 2010
JWisdom.com The Last Laugh of Enlightenment
with Rabbi Yaakov Asher Sinclair ( 5 MINUTES)
Feb. 22, 2010
JWisdom.com Esther and the third Truth with Rabbi David Aaron ( 9 MINUTES)
Feb. 19, 2010
JWisdom.com Olympic Faith
with Rabbi Sroy Levitansky ( 5 MINUTES)
Caroline B. Glick: Israel and the West are perpetrators of a myth that endangers the Jewish State
Feb. 18, 2010
JWisdom.com A Wedding Disaster to Remember
with Rabbi Y.Y. Rubinstein ( 3 MINUTES)
Feb. 17, 2010
JWisdom.com Think your life is messed up?
with Rabbi David Aaron ( 11 MINUTES)
Greg Logan: 'Greatest Jewish sporting event of all time since David versus Goliath' may be postponed because of bar mitzvah
Feb. 16, 2010
JWisdom.com Feet On The Street Spirituality
with Gavriel Aryeh Sanders ( 8 MINUTES)
Marty Peretz: Let Europe Mind Its Own Business. It Brings Nothing To The Table Save For Mischief
Feb. 15, 2010
JWisdom.com Are Our Children Really Ours?
with Rabbi Mordechai Becher ( 5 MINUTES)
Susan King: 'Wolf Man' reflected writer's wartime Jewish experience
|
| |
Jewish World Review
June 21, 2005
/ 14 Sivan, 5765
That Slippery Old Oil Tax
By
Michael Kinsley
| 
|
|
|
|
http://www.JewishWorldReview.com |
Watching the House and Senate quarrel over which favored users and which alternative suppliers will get new subsidies and tax breaks in the energy bill ought to be a hair-tearing experience for anyone with a basic understanding of economics.
But at the Bush White House where they care more for business than for capitalism the only frustration is that all this is distracting from the important work of enacting new tax breaks for the traditional oil industry.
Three years ago, the price of crude oil was about $27 a barrel. On Friday, it was about $57 a barrel. The United States imports about 12 million barrels a day. Do the math. A $30-a-barrel price hike adds up to $360 million a day, or $131 billion annually. That's just the extra amount we're sending abroad because of recent years' increases. The administration has no problem in calling this an "oil tax" when it is trying to explain the middling performance of the economy. "Not our fault, folks. Forces beyond our control."
But this is not your ordinary tax, for a couple of reasons. First, the revenue from an ordinary tax goes into the U.S. Treasury, where there is at least a chance that it will be used in ways that benefit millions of Americans. The revenue from this tax goes to the treasury in places such as Saudi Arabia, where it will support the decadent lifestyles of a few hundred princes.
Second, the United States actually consumes not 12 million but 20 million barrels of oil a day. The other 8 million barrels come from domestic oil extraction. I say extraction rather than production because oil "producers" don't actually produce any oil. They just pump it from the ground. That can be difficult, costly and even dangerous work, and I don't mean to demean it. But drilling and extraction are only a small part of the current $57 cost of a barrel of oil.
In the case of OPEC members, the cost of extraction is infinitesimal. Yet they can extract $57 a barrel from the rest of the world for other reasons, including some that are definitely not beyond their control.
Domestic "producers" have higher costs. But they were profitably pumping away in 2002, when the price was $27 a barrel. Now that oil goes for $57 a barrel, most of the difference must be profit. Eight million barrels a day at $30 a barrel works out to $87billion a year. If the extra $131 billion we pay to foreigners is a tax, so is the extra $87 billion we pay to the domestic oil industry. And if that $87 billion is a tax when collected from consumers, it is in effect a subsidy when pocketed by domestic oil extractors.
And the tax and spend doesn't stop there. When oil prices go up, other forms of energy go up too. This includes alternative energy sources such as windmills, cow exhaust, whatever. They all benefit from a subsidy of $30-a-barrel-equivalent, financed by the "tax" on energy consumers of an equal amount.
So it is odd, from an economic point of view (though less so from a political one), that the energy bill debate should be over who will get even more subsidies. What we should want is more energy taxes, not subsidies. This has been a theme of those irritating people, "thoughtful moderates," since at least the forgotten John Anderson presidential campaign of 1980.
The centerpiece of that campaign was a 50-cent-a-gallon gasoline tax, which would have been "rebated" by a drastic reduction in the Social Security tax. The idea was not to raise revenue, but to affect behavior. That is still the right approach, though hopeless in today's political culture. The way to get people to use less energy is to make using energy more expensive. People can then adjust in an infinite variety of ways. (And, once again, you can give the money back in other ways.) Why should you care whether someone saves energy by not buying an SUV, or by buying it and driving it less? A so-called BTU tax, which taxes all energy sources equally, would be even better than a gasoline tax, but that plummets us way too deeply into policy wonkery.
The point is that we are already paying this tax, only the money is going to foreign countries and to George W. Bush's petro-pals. As it happens, the price of gasoline has gone up just about 50 cents a gallon since 2002. That's a lot less in real terms than 50 cents was back in 1980. But still: What if a visionary president and Congress had slapped on a 50-cent tax in 2002? That might well have reduced demand, and impressed a jittery world, enough that gas prices today would be lower than they are even including the tax.
It's called market forces. These Republicans ought to read up on it.
Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Michael Kinsley is Los Angeles Times Editorial and Opinion editor and former editor of Slate.com.
Comment by clicking here.
Archives
© 2005 Los Angeles Times
Distributed by Los Angeles Times Syndicate
|
|

Arnold Ahlert
Mitch Albom
Michael Barone
Dave Barry
Tony Blankley
Andy Borowitz
David Broder
Stratfor Briefing
Mona Charen
Linda Chavez
Ann Coulter
Greg Crosby
Larry Elder
Suzanne Fields
John Fund
Frank J. Gaffney
Lloyd Garver
Jonah Goldberg
Julia Gorin
Jonathan Gurwitz
Paul Greenberg
Lewis Grossberger
Victor Davis Hanson
Froma Harrop
Betsy Hart
Nat Hentoff
David Horowitz
Laura Ingraham
Cheri Jacobus Jeff Jacoby
Paul Johnson
Jack Kelly
Ed Koch
Ch. Krauthammer
Michael Ledeen
John Leo
David Limbaugh
Kathryn Lopez
Rich Lowry
Michelle Malkin
Jackie Mason
Dick Morris
Bill O'Reilly
Jim Mullen
Clarence Page
Kathleen Parker
Dennis Prager
Wesley Pruden
Tom Purcell
Jonathan Rauch
Celia Rivenbark
Robert Robb
Cokie & Steve Roberts
Pat Sajak
Debra J. Saunders
Culture Shlock
Roger Simon
Michael Smerconish
Thomas Sowell
Mark Steyn
John Stossel
Cal Thomas
Bob Tyrrell
Diana West
Dave Weinbaum
George Will
Walter Williams
Byron York
Mort Zuckerman

Robert Arial
Chuck Asay
Baloo
Chip Bok
Dry Bones
Lisa Benson
John Branch
Gary Brookins
John Cole
J. D. Crowe
John Deering
Brian Duffy
Everything's Relative
Mallard Fillmore
Jake Fuller
Bob Gorrel
Joe Heller
David Hitch
Jerry Holber
Steve Kelley
Jeff Koterba
Dick Locher
Chan Lowe
Ranan R. Lurie
Jimmy Margulies
Rick McKee
Michael Ramirez
Kevin Siers
Jeff Stahler
Ed Stein
Danna Summers
John Trever
Gary Varvel
Kirk Walters

How 2
Lori Borgman
Elder matters
Fixit
Dr. Peter Gott
GET A JOB! by Marty Nemko
Richard Lederer
Tech Maven
Every Monday Matters
Nutrition Myths
Bookmark These
Bruce Williams
How Stuff Works
|