Economic $timulu$
The economic leap of faith stimulus plan is set to begin earlier than expected. Don’t get me wrong, we can certainly use the extra cash…I’m just not certain that a quick fix is what is needed. $600, $1200, $1800 is just not enough to make any serious purchases. Most people are so consumed with rising costs of transportation and goods that the money will likely be put away for emergency purposes or go for an immediate debt. I was reading an article today that was asking for the money to be sent to the oil companies and save us the 42 cents postage.
The Yahoo article that inspired this post quotes Senator Charles Schumer, D-NY:
“It’s galling to think that taxpayers’ stimulus checks will be lining the pockets of OPEC. The sad truth is that the average American family will spend almost their entire stimulus check on higher gas prices this year…Unless the administration gets OPEC to increase oil supply, American consumers are going to be in for a scorching summer of $4 gasoline with no relief in sight”
McCain suggests a tax break. An 18.4 cent tax break is not enough to ease the burden. In my area gasoline is up to $3.53/gallon. It’s higher in other parts of the country. Well it’s higher in Europe. Whatever, I don’t live in Europe. I don’t live in an area with an extensive public transit system where having a vehicle isn’t necessary. I live in an area where you have to drive your car to and from work everyday. Having a vehicle is essential. Honestly, I don’t think eliminating the tax would do any good. They know we will pay it so the price will drop at first and then slowly climb to where they currently are and the 18.4 cents will then be going to the oil companies instead of the government. If you want to eliminate the tax and add limits fine. But the tax is used for road improvements… Yeah. Many of the highways and interstates currently suck so obviously it isn’t working out that way is it?
Alternative fuels? Great idea. Somebody get on that and convince TPTB to accept your proposal and get a move on.
Lawrence Goldstein, quoted in this article has a different suggestion:
Instead of rolling back the tax, Goldstein says, the government ought
to help low-income Americans pay for gasoline. That would be cheaper and benefit those who need it most.
I can appreciate the socialist love but you know, some of us in the middle could use a little relief too. There are more than enough programs in place to offer assistance to those who need it and those who will do nothing but mooch off the system. Next suggestion, please.
So what do we do? Boycott!!! Oh, like that is feasible. Lurkers, all those who can afford to skip buying gas please post your comment now. However, a little pressure on the oil companies should come from somewhere. After all, check out their profit margin sometime.
According to this article from Feb. 1, 2007:
NEW YORK (CNNMoney.com) — Exxon Mobil Corp. Thursday reported the biggest annual profit on record for a U.S. corporation - earning more than $75,000 every minute of 2006 on the back of record oil prices.
The world’s biggest publicly traded company by revenue posted net earnings of $39.5 billion on revenue of $377.6 billion last year, topping its previous profit record of $36.1 billion in 2005, which at the time was the largest for any U.S. company.
Not adjusted for inflation, oil prices hit a record high of $77.03 a barrel last July, pushing gasoline prices above $3 a gallon nationwide.
Wow! Those were the days. Oil prices were at the low cost of $77/barrel. Today, April 25, 2008, the price per barrel is $118. Oil price predictions are for $125-$130/barrel.
Exxon profits as reported Feb. 1, 2008:
HOUSTON — Exxon Mobil Corp. posted the largest annual profit by a U.S. company _ $40.6 billion _ on Friday as the world’s biggest publicly traded oil company benefited from historic crude prices at the end of the year.
Exxon also set a U.S. record for the biggest quarterly profit, posting net income of $11.7 billion for the final three months of 2007, beating its own mark of $10.71 billion in the fourth quarter of 2005.
The previous record for annual profit was $39.5 billion, which Exxon Mobil had in 2006.
It’s nice to know that some companies are doing well.
Here’s an interesting comparison for gas prises since October 2005:
Wow. Remember when we were shocked to break $2.00? Wouldn’t it be wonderful if we could be shocked again?
April 25 2008 10:02 pm | Ramblings
April 27th, 2008 at 1:06 pm
Bush just admitted that this is not a stimulus; it’s a partial refund for victims of Bernanke’s inflation.
http://wcvarones.blogspot.com/2008/04/600-that-saved-world.html
W.C. Varoness last blog post..36 months
April 27th, 2008 at 3:12 pm
Thanks for stopping by WCV. Appreciate your input on my rant of the day.
April 28th, 2008 at 11:31 am
Well, it’s nice we’re getting an extra $1500, which still doesn’t pay all the extra taxes I had to pay on the 15th. Still, I don’t like the idea of these “rebates.” Not when Georgie boy has been spending money left and right in Iraq. Also, I agree that the idea of a tax break on gas is a terrible idea… we do have road to be repaired, especially after a long winter. As for helping the poor, I’d like that a lot better than helping Bear Stearns (and it’d cost a lot less)!
sages last blog post..Fire: A Movie Review
April 28th, 2008 at 8:29 pm
The roads do not get repaired in these parts.
Where is the poor relief for gas going to come from, and what about relief for the middle that tends to have more travel time required? More taxation? There is no good solution being offered.
More than happy to yank troops out of Iraq. Of course then there will be accusations of pulling out before the job is done. Another no win.
Still waiting on the “time for change” Congress to solve all our problems. Maybe with the ‘08 elections all will be well with the world.
I’m doubtful.
April 29th, 2008 at 10:44 pm
This makes me so freakin’ sick. If gas is going to go up because of a supply issue, then yeah, it will suck…but to hear the oil companies reporting record profits? Oh man, my blood boils.
So much that I’ve considered riding my bike to school from now on. All 37 miles. One way.
My boy is not so crazy about this.
My economic refund is going to go right into filling up my darn gas tank.
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