As energy prices skyrocket around the country, Congress considers taxing oil company profits and giving the money to citizens. Is this a great idea, or a terrible one?
Here are Five Fast Facts:
- 👍Progressive Democrats are likely to support this, because they think it levels the economic playing field a bit by taking money from Big Oil and giving it to Little People…like Robin Hood, but on an unimaginably bigger scale and with the government as the middleman.
- 👎Centrist Democrats and Republicans are likely to oppose this, saying it penalizes oil producers rather than incentivizes more oil production. They point out that it’s good for paychecks to have access to more oil, not less.
- 😘While it might sound great, don’t get too excited. Those making less than $75k per year ($150k per couple) would be eligible to receive the money, but they would only receive $240 per quarter ($360 for couples). So, it’s kinda like kissing your sister – yeah, it’s a kiss, but do you really feel that good about it?
- 🛢️Is Russia going to make oil prices go up no matter what? Sanctions on Russia are a contributor to rising oil prices, but the US continues to buy over 600k barrels of oil per day from Russia, so it’s not like those are particularly crippling sanctions.
- 💸This has all been tried before. Excess profits taxes have been tried in the past and it did put some cash back into Americans’ pockets in the short term. However, it’s not clear if it made a big difference long term. Besides, robbing Peter to pay Paul doesn’t work if Paul still can’t afford Peter’s oil!
🔥Bottom line: If you have thoughts about this issue, contact your Senator/Congressman to let them know! It’s your money they’re throwing around, so you should have a say in it!
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