The Senate held a hearing today with the CEOs of the five largest oil companies. As with most activities of Congress (Senate or House) nothing useful or meaningful was done. They played to their respective core constituencies and to the media. The problem was that despite focus on the oil companies extremely large profits, no one managed to put forth a line of reasoning that framed the issue in a clear and easily understandable manner.
I don’t find this surprising, after all, when has Congress ever managed to demonstrate a competency on anything; particularly on something that affects every American. On the Democratic side, except for Democrats from oil producing states, they were explaining why the oil companies should pay more taxes since they make so much money on very high priced gasoline. The Republicans were predictably defending the oil companies because, well, because they get a plentiful wad of contributions from these gas pumpers. So for a prolonged period of time these sound bite hawkers volleyed back and forth about why the other side was wrong.
But what was the real issue? What should the American people know about the long established and cozy relationship between Congress and the oil companies? Let’s frame the issue for them, they’ll never be able to do it for themselves and definitely not for the voters.
The question that should be addressed in the public arena is: Do the oil companies receive special and advantageous treatment from the federal government and thereby from which they derive an economic benefit at the expense of the American public? Now everyone already knows the answer to the question, right? Probably not.
OK, we’ve got the question; but what do we know about the circumstances and facts pertaining to the question?
Do the oil companies get any special tax breaks / benefits from the government?
Do the oil companies gain economically from these breaks?
If the oil companies pay less taxes because of the tax breaks, then who is left to make up the difference in Government spending? (Whether the Government spends too much or not enough is not the question, whether the Government spends an amount as low as the most rabid “smaller government” ideologue or as huge as the most expansive zealot of big government; someone picks up the cost of what the oil companies do not contribute.)
In order to make the profits, the oil companies have to charge who a price that includes the profits?
Is it equitable that corporations are more equal than individuals when it comes to the taxes that they pay?
If the oil companies pay less, then isn’t Congress raising the taxes on the average American?
So the question isn’t that oil companies should pay more taxes because they make huge amounts of profit. The question isn’t whether oil companies should share a greater burden than other industries. The question is should oil companies be special? The questions isn’t even should oil companies be able to use their profits to buy politicians.
The question is: Are the American people being treated fairly by their government?
And given the answer, both the Democrats and the Republicans are in the wrong. Again!
Sunday, May 15, 2011
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