How about a windbag prophets tax?

The Democrats are a political party so devoid of ideas that they can’t even come up with new bad proposals and are reduced to simply reinventing their old terrible ideas. A case in point is the so-called windfall tax on oil company profits. Both Dem contenders for the presidency favor a version of this old turkey.

Here’s the Barack Obama flavor:

Obama proposes oil companies be taxed on windfall profits from oil sold at or above 80 dollars a barrel, and the revenue be used to help relieve the burden of rising prices on working people, according to his campaign.

Hillary Clinton has gone past the proposal stage and has actually introduced a windfall tax measure:

Mrs. Clinton introduced legislation in the Senate today proposing [a] gas tax holiday and covering the cost of it through a “windfall profits” tax on oil companies, a campaign spokesman said.

Wait just a sec… Haven’t we been down this rocky road before? In the words of one of major league basesball’s most colorful characters, former Yankee catcher Yogi Berra, “This is like deja vu all over again.” The AP’s Daniel Sorid writes:

…even liberals would have a hard time defending the country’s last experience with a windfall tax, in 1980.

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What began as a compromise by the Carter administration to lift ceilings on oil prices grew into a bureaucratic nightmare that Congress in 1984 called the “largest and most complex tax ever levied on a U.S. industry.” The law produced nowhere near the revenue it promised, made the country more reliant on foreign oil, and generated reams of red tape, according to a 2006 report by the nonpartisan Congressional Research Service.

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The law was put out of its misery in 1988, two-and-a-half years before it would have automatically expired.

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“It’s a terrible idea today,” said Phil Verleger, who helped design the windfall tax policy as the Treasury Department’s director of domestic energy policy from 1977 to 1979. “The windfall profit tax was a quo for a quid; the quid was price decontrol. There’s no quid right now.”

Well, Mr. Verleger, it was a bad idea then, too. According to the Congressional Research Service (CRS), the 1980s windfall profits tax depressed the domestic production and extraction industry and furthered our dependence on foreign sources of oil.

Let me repeat that for those you on drugs or afflicted with terminal liberalism. Ver. 1.0 of the windfall oil profit tax was a disaster for the nation from which it has never recovered. Domestic oil producers found it unprofitable to produce, and the United States became even more dependent on foreign oil than it had been. It  is a major contributing factor to the situation we find ourselves in today: between Iraq and a hard place.

Why, then, in the name of all that makes sense, should this nation go back to doing something that not only did not work the first time, but was a major source of many of the energy woes we are experiencing today? Cynical conservatives are tempted to say that it is because socialists, despite the nearly universal failures of socialism throughout history, just can’t resist trying it again, hoping the results will be different this time.

The real answer is just as cynical. The oil companies are simply too inviting a target for the political left. They are fond of repeating that the oil companies are making billions of dollars of profit. Never mind that Exxon-Mobil’s profit margin of 10.7% pales in copmparison to some other well-know American corporations:

If you’re after really big earners… check out Yahoo (a 45.5 percent profit margin), Citigroup (33.4 percent), Intel (24 percent), and Apple (22.7 percent).

Never mind that Exxon-Mobil paid nearly $3 in taxes for every $1 in income. The company’s first quarter tax bill was $30 Billion.

Never mind that among Exxon-Mobil’s larest stockholders are not just individual fat cat shareholders such as the the Rockerfeller family, but many pension funds and mutual funds as well. Penalizing the big oil companies will simply force them to protect their shareholders by passing along the tax increases to consumers, who always pay the ultimate price for the left’s attacks on capitalism.

Those of us who take the time and trouble to study history do so because it is such an excellent teacher. It was the American-born philosopher George Santayana who is credited with the quote which would seem to explain the Democrats’ myopia on oil company profits:

Those who cannot remember the past are condemned to repeat it.

But it is another one of his quotes, and from the same source, which puts that first quote in context and best describe’s the Dems’ obsession with meddling in the affairs of the corporations they love to attack:

Fanaticism consists in redoubling your effort when you have forgotten your aim.

These liberal Democats and their two favorite candidates for the leadership of the free world are fanatics. As a conservative, I can think of one tax which I would support - a tax not on windfall profits, but rather one on windbag prophets.

- JP