“Never let a good crisis go to waste.” You probably thought it was invented by President Obama’s chief of staff, Rahm Emanuel, but it was actually Winston Churchill who first said it. Churchill was referring to the creation of the UN, which seemed like a good idea at the time, but not so much now.
Emanuel was referring to a big left-wing government program, which was a bad idea then and continues to be a bad idea today.
In the midst of this energy crisis, with soaring oil and gasoline prices and just about every other energy award, Joe Biden decided to choose a radical climate agenda, over national energy security.
President Biden said yesterday: “My dear mother used to have an expression, ‘inside everything ugly, something good will happen if you look hard enough.’ We have a chance to make a fundamental shift to renewables, electric vehicles…at all levels.”
CHEVRON CEO MIKE WIRTH CALLS ON BIDEN TO END BIG OIL HOSTILITIES AHEAD OF GAS PRICES CONFERENCE THURSDAY
That sentiment was echoed by several others in his administration. We have an inflation crisis, we have a recession crisis, we are also funding the Russian war machine, but the Bidens are determined to implement a crazy Green New Deal strategy that will never happen and while the Americans suffer enormous economic and financial difficulties with more to come, the Bidens still cling to an ideological obsession.
I wonder if you find this as unbelievable as I do because they will do anything not to turn on the fossil fuel taps. They are already blowing up our strategic oil reserve, which is a national security measure, not political price fixing.
They even flirted with some sort of debit card gas payment system and now the latest is a temporary suspension of the federal gas tax of 18.4 cents, which of course is a gimmick, as even Barack Obama called it while in office, and set to expire after the midterm elections for vote-buying purposes, but even worse, there’s a good chance that if they push this idea, it will be combined with a tax on the excess profits of oil companies. Shades of Jimmy Carter.
Don’t forget that the federal gas tax funds the road trust fund, which is already on the verge of bankruptcy. So if they suspend the federal gas tax, they will defund roads and highways and undermine their valuable infrastructure legislation.
A tax on excess profits would be very bad news. You will get less oil and gas production, much less.
Ron Wyden wants a 21% tax. This would be in addition to the existing corporate tax of 21%, resulting in a marginal tax rate of 42% on fossil companies.
If you tax something, you get less, but again, that’s exactly what these climate radicals want — less oil and gas?
GOLDMAN WARNS RECESSION RISKS ARE NOW HIGHER AND ‘MORE FORWARD’
They don’t care about high prices, the difficulties of the middle class, truckers who cannot afford to refuel. They care about EVs and battery chargers even though, by the way, manufacturing EVs and battery chargers would require significant mining and processing which in itself would release a lot of carbon emissions into the world. ‘air.
It’s one of the things that’s so absurd about this whole Biden climate thing. In fact, building wind and solar farms will release a lot of carbon into the air, but I digress.
“Never let a crisis go to waste.” An excess profits tax is, in fact, big government socialism and there may be more to it. The President has threatened to use the Defense Production Act to somehow force more oil and refining, or limit exports – more government socialism.
The president is working with Joe Manchin and Chuck Schumer for $500 billion in revolving tax credits and possibly other Build Back Smaller playbook spending that would be associated with a massive tax hike, possibly more a trillion dollars.
That would surely smack the the economy in a deep recession. A bill like this would be a perfect pair with the $2 trillion spending bill from 18 months ago. The Democrats would have a perfect record. They vote for inflation and now they can vote for recession.
Kind of a tragedy, don’t you think, since they received a fundamentally strong economy from Mr. Trump, with strong growth and low inflation?
The last thing I want to do is insult Joe Biden’s dear mother, believe me, but I think other dear mothers might say, “Joe, where’s your common sense?” Some dear mothers in the western chain might even say, “Joe, don’t you have a sense of horses?” and I will just say: apparently not. It’s my riff.
This article is adapted from Larry Kudlow’s opening commentary on the June 21, 2022 edition of “Kudlow.”