Mid Morning
Roger Nusbaum (June 9th, 2008) Writes:
Here is a nutty thought.Some folks want to impose a windfall profits tax on the oil companies because of how much money they are making. The profits are obscene these people say.I have never heard anyone define obscene but wouldn't obscene have to be indexed to inflation?Some other folks feel that the gub'ment's inflation data is cooked in such a way as to minimize the true rate of inflation because of various COLA requirements for entitlement programs.Wouldn't windfall profits inflation indexing be an incentive for cooking the inflation numbers upward? The COLA indexing an incentive to cook the numbers downward? Which one would win?If more taxes could solve problems, not have unintended consequences and be good economics then people would be all for it but the reality is higher taxes do not solve problems, do have unintended consequences and is ...


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