The Gas Price Spike Act, H.R. 3784, would apply a windfall tax on the sale of oil and gas that ranges from 50 percent to 100 percent on all surplus earnings exceeding "a reasonable profit." It would set up a Reasonable Profits Board made up of three presidential nominees that will serve three-year terms. Unlike other bills setting up advisory boards, the Reasonable Profits Board would not be made up of any nominees from Congress.Chris Campion of Vermont Tiger is skeptical.
If prices are too high, people buy less, and producers reduce profit and costs if they want to continue to move produce. It's that simple. It also requires absolutely no government involvement whatsoever, despite what our patriarchy seems to deeply wish to be true.Higher energy prices also spur development of the alternative energy sources or "alternative transportation programs", without the lags inherent in collecting the taxes and identifying which of the programs will be funded. That approach, however, offers populist politicians scant opportunity to impress their constituents by cocking a snook at the Moneyed Interests.