During her address to the Republican National Convention last night, Sen. John McCain’s (R-AZ) running mate, Gov. Sarah Palin (R-AK), received loud applause and cheers for mentioning the windfall profits tax that she implemented on oil companies in Alaska, which “filled up the state treasury,” when “oil and gas prices went up dramatically.” Watch it:
The tax helped to double Alaska’s oil revenue to $10 billion after Palin enacted it in 2007, generating “stunning new wealth for [Alaska] as oil prices soared.” Palin said that the tax helped give Alaska citizens “an equitable share for our resources.” In fact, “this year, she used some of the proceeds to provide a $1,200 rebate to residents as energy prices rose.”
McCain, however, is against raising a windfall profits tax on oil companies.
When Sen. Barack Obama (D-IL) suggested a tax on oil companies’ windfall profits and proposed using the money “to help families pay for their skyrocketing energy costs and other bills,” McCain derided the plan, saying it would only “increase our dependence on foreign oil, and hinder exactly the kind of domestic exploration and production we need”:
If the plan sounds familiar, it’s because that was President Jimmy Carter’s big idea too — and a lot of good it did us. Now as then, all a windfall profits tax will accomplish is to increase our dependence on foreign oil, and hinder exactly the kind of domestic exploration and production we need. I’m all for recycling — but it’s better applied to paper and plastic than to the failed policies of the 1970’s.
Does McCain think his running mate was just recycling a failed policy of the 1970’s?