Why does Obama think raises taxes on oil companies will decrease the price of gas?

Assuming that he is smart (and I do make that assumption) this is a ';feel good'; measure. This tax has been tried in the past and did not reduce the price of gas and no economist has ever suggested that it would. This is about punishing the oil companies and making the electorate feel as though no one is making an obscene profit from their pain. It is political, only since the profit made by the oil companies does not seem obscene in comparison to their expenses.Why does Obama think raises taxes on oil companies will decrease the price of gas?
Let me explain this to you in simple terms.





Lets say gas will hit $5.00 one day.





With higher taxes the amount made from the gas company is less and the amount collected by the government is increased. Thusly increasing govt revenues and lowering the reliance on income tax.





If Govt removed all taxes from gas tomorrow, the price would slowly increase to what we're paying today within 6 months. Not to mention, lower government revenues equal stronger reliance on income taxation OR smaller oversight for industry.(government is oversight for industry)





This is why one of the founding principles of the ';reganomics'; was lowering corporate tax structure. Of course companies can prosper and make money when regulations are lax, but only the best and brightest can do so on a equal, regulated playing field. In order to ensure the playing field is as equal as legally possible, you need to fund regulatory measures.





You guys should really read a book.





Oh, and since you've thumbed me down already....would you care to point out where I am mistaken here.....Why does Obama think raises taxes on oil companies will decrease the price of gas?
Obama knows this will INCREASE the price of gas. This is exactly what he wants, he鈥檚 an anti capitalist and seeks to do everything possible to bring down free enterprise and usher in a state controlled economy. Need proof? Check is voting record, which is left of even Ted Kennedy, and that鈥檚 saying something.





Obama doesn't give a rats *ss that you can鈥檛 afford to fill your tank, he鈥檚 hoping it will break your spirit and force you on some sort of federal or state assistance. Then he (and his party) wins.





This is how Democrats have consistently built their base, from welfare, to so called ';entitlements'; give away free stuff, and the greed of the masses = votes for them.
Instead of taking Intro to Oratory Skills, Intro to Macroeconomics, and Intro to Microeconomics, Obama took Intro to Oratory Skills, Intermediate Oratory Skills, and Advanced Oratory Skills.
It's not so much about raising taxes as it is about ending tax cuts that had been created specifically for the petroleum industry.
Do you actually research or do you just spout off whatever the talking heads tell you? Obama has said that he would use that revenue to look to alternative fuel sources.
Probably, because it's what the people want to hear.





People don't want to hear the truth. That's why politicians create soundbites.
He is just pandering to his base - folks who despise success. ';Punish those who succeed by taxation'; is one of the basic tenets of Obama's political philosophy. What a great guy! HA!
That's just it, he doesn't think, he just says the opposite if what McCain or Bush says hoping it goes over with his supporters.


he is after their vote not to lower their gas prices
He doesn't. He said he plans to to use the extra revenue to find another energy source.
He would raise there taxes on the condition that they don't lower prices.
Take from the rich and give to the low class the no class


and the dreggs of society
doing so will only decrease exploration due to $ burden %26amp; risks
lack of economic knowledge.
Because he's a MORAN!!!
he's confused
Lack of basic eco101
lack of common sense.