For a man who claims he can do nothing about rising gas prices, he sure is doing everything he can to drive them up.
“And when the price of oil goes up, prices at the pump go up, and so do these companies’ profits,” he said. “Meanwhile, these companies pay a lower tax rate than most other companies on their investments — partly because we’re giving them billions in tax giveaways every year.”
Of course, when the dollar is recklessly and irresponsibly inflated by a government addicted to buying votes with entitlements it has no business doling out in the first place, those dollars are worth less (and continue to be so until they are worthless) so it takes MORE of them to buy the same thing you used to be able to buy with fewer dollars. So now the barrel of crude that used to sell for $67 now sells for over $100.
This means that you pay more at the pump to fill your tank, demonstrated to great effect with my last fill up. This also mean that to maintain the same profit margin, which for oil companies is a very small one (the government makes more on a gallon of gas than the oil companies do), they have to raise prices. It also means that the amount of dollars in profits goes up, thus giving them “record” profits, but it does not mean that the percentage of profit goes up at all. Even a three-year old will understand it when you substitute dollars with a medium that they can relate to. And just like when any other tax on a business goes up, this additional cost of doing business will be passed on to the consumer.
I just can’t wait for $7.00 a gallon gas, can you?
But then, that’s been his plan all along.