June 16, 2008

Last week the Senate voted down a proposal to increase the tax burden of oil companies. The vote was 51-43, nine short of the 60 votes Democrats would need in order to override a presidential veto.

The measure would have repealed $17 billion in tax breaks for oil companies as well as levying a 25 percent windfall profits tax. Companies could have avoided the tax by investing the money in renewable energy development or in new refineries.

According to Bernie Sanders, a supporter of the bill, the five largest oil companies have made $600 billion in profits since George W. Bush became president.

When I was a kid growing up in Michigan, US taxpayer money was used to bail out Chrysler because the move was deemed necessary for the larger good—keeping Americans employed. When I was in college, President George H.W. Bush agreed to bail out the Savings and Loan industry (and his son Jeb, whose Savings and Loan had gone bankrupt), again with taxpayer money. Now, more government money is being used to bail out the mortgage industry, including Bear-Stearns.

It's an old adage, but it's true: American companies are opposed to socializing profit, but have no problem with socializing loss. If Exxon and the rest of the oil industry were on the brink of bankruptcy right now, don't you think they would be looking to the government for help?

I say: what's good for the goose is good for the gander.