Pump Pain

Last week I was in Chicago. The price for a gallon of gas in the windy city was priced at $4.07 a gallon! I remember saying that I would never pay over $3.00 a gallon. There I was pumping away and watching the number reach outrageous levels. I could here another other guy at the next pump groan as he watched his money fly out of his pocket.

With an election looming all the candidates want to be the hero in this saga. Yet Barack Obama opposes immediate relief and lower taxes on fuel. What kind of plan is that?

Last month, Senator John McCain proposed a summer gas tax holiday. While that's no where near a real energy policy, it's a temporary fix that would help a bit. McCain’s plan calls on Congress to suspend the 18.4 cent Federal gas tax and 24.4 cent diesel tax from Memorial Day to Labor Day, saving Americans over $6 billion this summer.

Unfortunately, Obama along with U.S. Speaker of the House Nancy Pelosi and Senator Harry Reid are all content dragging their feet and doing nothing. I guess I shouldn't say "nothing". They do blame the Republicans for high fuel prices. That's convenient, yet the Democrat majority in Congress continues to propose no real solutions to lower rising fuel prices.

Obama wants to impose a windfall tax on oil companies. "Let's stick it to those rich oil guys and teach them a lesson," the crowd cheers. Here is my real fear: Obama's proposals have been tried before by former President Jimmy Carter. While the "get even" attitude is a natural reactions, the last time Congress imposed a form of the windfall tax was the final days of the Carter Administration, and the result was a substantial reduction in domestic oil production (about 5%), thus raising the price of gas at the pump; and a 10% increase in U.S. reliance on foreign oil. So if you want to stick to yourself then go for the Obama plan.

It does not take an economic genius to realize additional taxes on oil companies will be passed on to consumers resulting in even higher fuel prices.

We need a policy that allows American companies to develop our own resources, reduce foreign dependence and provide affordable energy for all. Our next president better grasp that NOW.