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Reply #91: That would result in oil drying up for the entire U.S. [View All]

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Stuttgart77 Donating Member (58 posts) Send PM | Profile | Ignore Sat May-07-11 07:27 PM
Response to Reply #86
91.  That would result in oil drying up for the entire U.S.
Edited on Sat May-07-11 07:28 PM by Stuttgart77
Our economy would come to a screeching halt.

Oil is a commodity and there isn't enough to fill demand in the world today. If a 90% tax were implemented, all U.S. oil companies and supporting refinery companies would close shop here and move overseas. Unemployment would rise dramatically from all the people unemployed in the oil industry and all other industries, because we all have to get to work, transport food, etc. Any oil on the high seas would be directed to other countries instead of us. Since we don't drill as much here as we used to (we've closed many fields off of the coast of California, Virginia and the Gulf and many sites on land), we'd be screwed! You can't turn on those oil wells overnight. Plus, the U.S. dollar isn't nearly as strong as it used to be, so oil producers around the world would be happy to take other countries' currencies over our weak dollar without a 90% penalty. They can do better elsewhere in the world. A 90% tax would push global investors over the edge and out of our markets.

We're not ready to transition over to another form of energy for transportation overnight. You are right, there would be no profiteering. The U.S. would be in a massive depression. Other countries less so.

Careful what you wish for; this is a global economy and we don't have nearly the leverage you think we do. The economics of such a tax are a bad idea.

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