Arab Oil States Control Our Coastal Waters

The headline in my local paper heralded Congress last week for passing a bill to "protect" the north coast here in California. The headline just as easily could have read, "Congress Cedes control of North Coast to United Oil Emirates" because closing off our national territory to oil exploration is exactly what the Arabian oil producing nations want us to do.

Here is just how twisted this situation is, and if you understand it, please let me know. Congress gives oil companies depletion tax credits so they will find new sources of oil. Congress then systematically closes off all the potential sources of new oil from exploration.

Congress threatens to take away the tax credits and a large group of people jump for joy thinking that the nasty oil companies will finally get it stuck to them. Of course, anyone with half a brain knows that the corporations don't pay the taxes, they charge their customers whatever is needed to cover their tax burden. So consumers will pay the tax, which is completely regressive.

And isn't it interesting that the liberals who loathe "regressive"or flat income taxes, love regressive gasoline taxes? How can this be? It's simple. Liberals favor "progressive" income taxes because they discourage individuals from pursuing economic advancement. A high standard of living for people is bad. But any tax on gas, however regressive it may be, is seen as protecting plants and animals, whose "standard of living" is far more important than ours. The dirty little truth is, however, that as society increases its measure of material wealth, it is able to invest more to protect the environment.

Then, because the situation isn't ridiculous enough, Congress tries to "shame" the oil companies into lowering gas prices. Yeah, that’ll work.

To recap: Congress won't let oil companies drill new wells; Congress gives oil companies tax credits explore for new oil; Congress threatens to take away these tax breaks; Congress tells the oil companies they really should lower their prices. (The presidential candidates from the party that controls Congress, by the way, are promising to raise the price of government immediately if elected. High oil prices bad; High government prices good!)