Oil profit tax not good policy

by Alabama REP member S. Lee Ryals, published in the Montgomery Advertiser, August 12, 2008

West Marcus, who is "not enamored with either party's nominee," wrote an outstanding letter criticizing Barack Obama's ideas about oil company profits. Obama wants to tax the profits of oil corporations to pay for a tax stimulus for Americans.

This is a silly idea because taxing businesses only makes them increase their prices. In their quest for success, businesses have to make money. Their survival is dependent on sales prices being higher than the costs of the origins of their raw goods or services.

John McCain is the only presidential candidate who has offered Americans a comprehensive plan at energy reform. As president, McCain will create policy that will break our dependency on Middle East oil. This will be done by his incentives of creating fuel-efficient transportation and better technology facilitating renewable energy.

As Marcus knows, Obama's plan would raise oil prices. This is why he should join me in voting for John McCain.