Recorded on May 5, 2011
It's time for common sense; I'm Ernest Istook.
Economic illiteracy is thriving in Washington D.C. Because gasoline prices are up, some want to raise taxes on oil and gas companies by denying tem the identical tax deductions that many other industries enjoy.
Higher taxes of course won’t bring fuel costs down, but would raise them even more. Why are prices up? It’s basic: increased demand and decreased supply.
Economic recovery in America requires more energy as do rapid growth in China and India. Plus Japan has to replace its lost nuclear energy and we’ve lost supply from Lybia. And the Obama administration keeps blocking domestic drilling, meaning we depend more on imports. But because the federal reserve is devaluing the dollar, each barrel of imported oil costs more. It’s economic illiteracy and you and I are paying the price for it.
For common sense, from The Heritage Foundation, I'm Ernest Istook.