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A possible "solution?"
Posted Wednesday, June 11, 2008, at 4:25 PM
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As gas prices rise ever higher, many people are proposing different solutions to bring them back down.

But, in my mind, none of them really have legitimate merit.

Most of the "solutions," especially the gas tax holiday, would not work because the oil companies will just raise the prices more to compensate for their "loss."

The oil companies are making approximately $5 billion in profit each year and, even though oil production is on the rise, their profits are increasing as much as the prices rise.

I believe there is only one true way to help bring gas prices back down.

Cap the profits.

Even at a cap of $1.5 billion per year, the oil companies will still be extremely successful and, at the same time, make them more mindful of where the price levels are.

Also, as an added incentive to keep gas prices affordable to the average American, there should be some sort of penalty for exceeding the cap.

I'm thinking it should be similar to the "luxury tax" concept held on Major League Baseball teams, but more extreme.

For every dollar over the cap that a company makes, they have to match it out of their profits.

So, if a company ends up with a profit of $2 billion in a year where the cap is $1.5 billion, their excess and the "luxury tax" would be $500 million a piece, making their actual profit $1 billion.

What should be done with the "luxury tax" money, you may wonder.

I have an idea for that too.

I say the money should be spread around to city street departments and county highway departments to be spend exclusively for the repair and maintenance of roads around the country.

With this plan, it appears to be a "win-win" because either gas prices will go down or local and county governments will be able to afford to fix roads -- or both.


Comments
Showing comments in chronological order
[Show most recent comments first]

But, if we it this way, the oil companies will not have the money to contribute to the election campaigns of the politicians that the oil companies want in office. Who, then, would watch the oil companies backs in the halls of Washington?

-- Posted by FlyinLion on Thu, Jun 12, 2008, at 7:09 AM

Good point. Guess you would have to vote for a president that isn't taking money from the oil companies! HA

Agreed on that one!

-- Posted by madmom61 on Thu, Jun 12, 2008, at 10:15 AM

At what point do we make the oil companies throw up their hands, say "It's just not worth it anymore" and shut down. What would that do to gas prices I wonder.

We've already made it unfeasable to build new refineries due to massive overregulation. That's part ofthe problem as is. Government need to get their mtts out of the oil business. Not create further problems.

-- Posted by Inquizitor on Sun, Jun 15, 2008, at 3:44 PM

When you have a president and a vice president in office that are recieving money from the oil companies, then governament will never back down. They want to fill their pockets while they can!

-- Posted by sassypants on Mon, Jun 16, 2008, at 11:59 AM


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