Okay, let's be realistic about this.

Most companies make about 12 to 14% profit in terms of profit to revenue.

Exxon-Mobil made 9%.

They make quite a bit more profit on jet fuel and things like that, but let's talk about gasoline.  Gasoline has roughly 9 cents profit built into every gallon (profit that goes to big oil, not the individual station operators).

Federal taxes on gasoline are 18 cents per gallon.

When you factor in state taxes, you're up to about 50 cents per gallon.

I'm not necessarily even advocating the elimination of taxes on it; I realize that there are lots of useful (and non-useful things) provided by taxes.  But COME ON!

Let's look at this from an economic standpoint.

The price per barrel of crude oil is (roughly) US$75.

What would happen to the price per barrel of crude oil if we were to expand our drilling?  Say, to ANWAR?

The supply of oil would increase.  Because there is inelastic demand on oil as demonstrated by how American driving habits have not changed, the price of oil would necessarily decrease because we have more available and, for example, OPEC needs to work harder to compete with the increased supply here.

WHY are the politicians advocating taking money away from the company, a company that gives its profits back to its shareholders?  I believe it was US$1.43 per share back to the people who own stock in Exxon-Mobil.  That's pretty nice for a quarter!  (Of course, one could say that companies shouldn't be taxed at all and the tax should just be on the individual, but that's another story). 

Then, WHY are they advocating giving money back to us?  That will SPUR INFLATION.  Giving $100 to over 100 million taxpaying people will put $10 billion+ back into the economy.  Artificially introducing new money into the economy further decreases the value of the money, which would hurt us in the global market and decrease the buying power of what we *are* given back.

I don't get it.

Politics defy logic.

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I don't get it.[/quote]
Politicans want to be re-elected.  They assume people neglected to take economics 101.

The US has been lucky to be able to throw oil around so easily.

Let not forget about Iraq. If we can stableize Iraq and they can start really pumping, they have the potential to break up opec. Opec is a cartel, and when one country sells at a lower price it forces the rest of them to lower their prices and then you no longer have a cartel. So if we can get Iraq pumping Opec is going to drop its prices or disinigrate.

I don't neccessarily believe there should be an income tax, I am a proponant of a national sales tax, but that is a different story too.