Posted on 09/26/2006 10:52:51 AM PDT by calcowgirl
WHEN GAS PRICES GO THROUGH the roof, two things inevitably happen: Voters see red, and all kinds of nutty proposals are floated aiming to make oil companies share their pain. Hence Proposition 87, which would impose an oil extraction tax on companies that drill in California and use the proceeds to pay for alternative fuel research.
Even by the warped standards of ballot initiatives, Proposition 87 — the result of confused economic thinking — is deceptively marketed. Do not be misled by its grass-roots posturing. The reason the measure, which might be retitled Bing vs. Big Oil, may be the most hotly contested on November's ballot is the depth of the bankrolls on both sides. Multimillionaire movie producer Stephen L. Bing has contributed $40 million to the "yes" campaign, the most ever spent by an individual on a California ballot measure. Plenty of business interests are lined up alongside him against Big Oil, hoping that frustration with high gas prices will create a new form of corporate welfare for competing energy companies.
The "yes" campaign essentially urges voters to stick it to the oil companies that have been gouging them at the pump, making the companies pay for cleaning California's air. But the same phenomenon fueling resentment of oil companies renders the measure unnecessary. High gas prices are already creating a powerful market incentive for privately funded research on alternative fuels, making it superfluous to spend tax money on it.
(snip)
Proposition 87's extraction tax, on the other hand, feels a lot like an "extortion tax" offered up by well-funded venture capitalists eager to impose a tax on their competitors. Don't buy it.
(Excerpt) Read more at latimes.com ...
I would favor an "Entertainment Tax" with the proceeds going to promoting decent entertainment. Not likely to happen though.
We do need to do this - tax every movie a few dollars, make a bill ensuring studio profits not to exceed 10%. I know it's not real-world, but we can beat these fruitloops at their own game.
Great idea. Perhaps to fund anti-gang or violence prevention programs.
"It's for the children", ya know?
From what I hear they never make a profit in Hollywood thanks to creative accounting. Maybe a tax based on gross expenses would do it.
And funds corrupt politicians.
Don't these jerks understand economics. This is a disincentive!
Yeah, but less drilling means that the people stick it to Big Oil...or something. Actually, Big Oil will simply shrug and adjust.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.