By Jeffrey Folks
American drivers are angry at having to pay $4 a gallon for gas, and understandably so. Their anger is often directed at the oil companies that supply the gas. It should be directed at Barack Obama instead.
From the beginning of his appearance on the national stage, Obama has focused on the goal of driving up energy prices with the idea of "weaning" America off fossil fuels. He has succeeded in driving up prices, all right, but not in reducing dependence on fossil fuels.
Now, in the ongoing deficit reduction talks, the President is insisting on cutting $45 billion of incentives for oil and gas companies over the next decade. The Democrats like to portray these incentives as "special breaks" for Big Oil, but in fact they are no different from expensing and depreciation allowances enjoyed by most manufacturing businesses. In reality, Obama's proposal has nothing to do with "special breaks" for oil companies. Instead, it is a "special tax" aimed specifically at oil and gas.
No unbiased observer can say that the American oil and gas industry is under-taxed. And yet Obama wants to pile on more taxes with the aim of bringing some of our nation's greatest corporations under the heel of government control.
Oil and gas is one sector where American companies still enjoy a distinct advantage over foreign competitors in the form of superior management and technological know-how. It is one area, in other words, where American workers are able to compete effectively with foreign workers. A $45-billion tax would go a long way toward destroying that advantage.
Obama's energy tax would also reduce funds available for exploration and production, thus reducing output and raising the cost of energy for American consumers. It would reduce domestic production, thus exacerbating our balance of payments problem. It would put American energy companies at a disadvantage to foreign competitors, thus reducing the number of jobs for American workers in the oil and gas sector.
This, of course, is exactly what the President wants. By driving up gas prices, Obama hopes to force Americans to purchase hybrid and electric vehicles. And by reducing the size and influence of America's oil and gas companies, Obama plans to make these companies even more susceptible to government control and de facto nationalization.
Just how high gas prices will go is a matter of serious debate at the present time. Respected energy analysts have suggested that oil may hit $170 a barrel by spring 2012. That would translate into $7 a gallon at the pump.
If American drivers are angry at paying $4 a gallon, they would be furious when gas hits $7. But Obama knows that their fury will be directed at oil companies. At that point he could score points by proposing another windfall profits tax, enough to drive prices up even further.
For this President the goal all along has been $10 gas, and he is closer to achieving it than most observers realize.
Republicans should not let Obama get away with using this crisis to advance his purposes of nationalizing the American economy.
http://www.americanthinker.com/2011/07/obamas_plan_for_10_gas.html
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