While prices at the pump have tapered off a bit in the past few weeks, they still remain a drain on the pocketbooks of most Americans. In order to deflect criticism from the Democratic administration, the president’s fellow partisans have demonized oil companies, with Senate Democrats seeking to “deny five major oil companies the domestic production tax credit that is available to all manufacturers and mining companies, including oil companies” because as Michael Barone puts it, “big oil companies get lousy ratings in polls. So stick ‘em with a higher tax bill.”
Problem is, as the sage pundit adds:
. . . energy companies including but not limited to the big oil companies have been developing new economically viable sources of natural gas and oil production, while government subsidies to renewable sources like solar and wind energy aren’t producing significant increases in energy supply. So the policy on this bill is to take away money from the productive and give it to the unproductive.
Read the whole thing. It does seem some legislative Democrats have a visceral opposition to the productive sector of our economy.
When you demonize the oil companies, you demonize those entrepreneurs best suited to develop new sources of energy and more efficient means of production. By contrast, if government would reduce the amount of regulations it imposes on oil companies while lowering the tax burden on these energy developers, their costs go down and their ability to innovate goes up, making them better able to reduce the price at the pump.