Democrats Bow to Republicans Again

Once again the Democrats have been forced to compromise away their precious tax hikes in order to get legislation passed:

Senate Democrats yesterday bowed to Republicans and stripped a proposed tax increase for oil companies from a broad energy bill, clearing the way for passage of the measure that includes the first increase in vehicle gas-mileage standards in 32 years.

The bill, designed to make the nation less dependent on fossil fuels and which calls for greater use of renewable energy sources, passed 86-8 and now heads back to the House for final approval.

"Compromise can be frustrating, it can be exasperating, and it can be maddening," said Senate Majority Leader Harry Reid, Nevada Democrat. "But at the end of the day, compromise can lead to progress — and that is exactly what we have today."

Added Senate Minority Leader Mitch McConnell, Kentucky Republican: "This is a good accomplishment — achieved, as everything good in the Senate always is, by cooperation between the parties."

This effort to increase taxes on oil companies demonstrates once again the basic lack of understanding about taxes and their effect on what's being taxed. If your goal is to get more energy, the worst thing you can do is increase taxes on it. You always end up getting less of the activity you are taxing.

If the Democrats were really interested in expanding energy opportunities in the U.S. they'd free up more of the energy company's money for exploration and expansion of facilities, like refineries and drilling platforms. Instead the Dems offer tax hikes, which of course are not paid by the companies but by the energy users...you and me. The hikes raise energy prices for everybody without actually providing any more energy for anybody.

Once again the Republicans have saved the U.S. from the folly of Dem policies and priorities.