What is it with normally reasonable republicans that when it comes to the Windfall Profits Tax that makes them become completely unreasonable and accept the republican spin machine bull about it.
I keep seeing at various blogs the claim that the 1980s windfall profits tax caused oil production to fall when the facts clearly show that claim is completely untrue.
Actually, since US oil output peaked in 1970s about the only time that US oil production rose was when the Windfall Profits tax was effective.
I am not making an argument in favor of the tax, all I’m doing is asking for a little honesty from people who are normally reasonable on such things.
P.S. A related point about oil. Since the last US oil refinery was built in the US in 1976 US crude oil output has fallen about 40%. If we are producing 40% less crude oil, why do we need new oil refineries?
P.P.S. Ok here is an addition. The chart shows oil production in the lower 48 states versus a trend. What is shows is that the only time output rose significantly above trend was when the
windfall profits tax was in effect. So we are right back where we started. I’m still waiting for someone to provide a defense of the repeated republican claim that the WPT causes production from existing well to fall.