Absurd Energy Economics
The national average for a gallon of gasoline stands at $3.967, just 14.7 cents away from the all time record set in July of 2008. It is no wonder that a recent CNN/Opinion Research Poll found support for offshore drilling stands at 69%, up 20 points from last June.
Today, Congressman Gerry Connolly (D-VA) upped the ante.
According to The Hill, Connolly said “he would offer an amendment later in the week that would increase taxes on oil companies by $37 billion, and give that money to licensed U.S. drivers. Connolly said that change would amount to about $185 per driver, equivalent to a reduction in gas prices of about 27 cents per gallon.”
As we noted yesterday, an increased tax burden “may have the effect of decreasing exploration, development, and production, while increasing prices and increasing the nation’s foreign oil dependence.” In essence, Mr. Connolly is offering drivers $185 in exchange for a plan that would potentially usher in decreased domestic production and higher energy prices, both of which result in fewer jobs.
UPDATE: A spokesman for Senate Majority Harry Reid (D-NV) said the Senate is unlikely to vote on a bill to increase taxes on oil production this week.