FITE Newsletter #27
Re: corruption, taxes, and gas prices
Remember all those tax cuts that “benefited American families?” Most American families saved around $450. But the gains have been more than erased by the more than $500 extra paid annually for gasoline and heating oil. Then again, they were already erased by increases in local taxes and fees in the same time period.
We have explained in previous newsletters how Bush’s irresponsible tax cuts and profligate spending caused OPEC to increase oil prices. But the price of crude is only one part of the story. Refiners are making the biggest profits in a long time, and a lot of that has to do with the fact that the Bush administration allowed 33 refinery mergers after the refineries dumped $3.5 million into Bush campaign coffers. The mergers translate into less competition and higher prices.
The refinery-Bush love fest will get even “better” if Bush is reelected because the new energy bill, providing some $25 billion in tax breaks, will likely pass after a Bush win.
Political chemistry lesson number one: whether it’s Saudi Arabia, Nigeria, Texas or Washington, oil money and good government don’t mix. Arianna Huffington runs the numbers that reveal how our oil dependence is weakening our society and threatening our security—and comes out in favor of regime change here at home.
ULTIMATE PRICE TAG LIKELY TO BE $800 BILLION TO $1 TRILLION
Center on Budget and Policy Priorities