Posted on 11/28/2007 9:56:31 AM PST by cogitator
Did you read my post? I address the refining issue. Essentially what I suggest is putting a floor price on imports. I suggest a floor low enough not to likely kick in, and high enough to stimulate domestic shale oil production. $35 a barrel. Even $30 would do. If the price of imports drops below the floor, a tariff kicks in to keep the imports from undercutting domestic production. If the tariff kicks in I also would require every dollar offset dollar for dollar the federal taxes on the refined product. Importing refined product would also be hit with the floor.
I am not suggesting we create another fiasco like what happened with steel tariffs. I am suggesting that it is in our national interest to be able to give dipwads like the Saudis and Venuzuelans the proverbial finger once we are largely energy self sufficient.
If the tariff kicks in I also would require every dollar offset dollar for dollar the federal taxes on the refined product.
If your tariff kicks in, then that means the world crude price is lower than your target crude price, thus foreign refined product is also somewhat cheaper.
Please, expand upon how/what you mean by 'dollar for dollar' and how that keeps the price of domestic oil artificially high without keeping the cost of refining domestically artificially high.
I would apply the tariff to refined products as well. Crude or refined, a price floor on imported product. $35 a barrel for crude, and whatever the equivalence is for refined product.
Energy Victory:
Winning the War on Terror
by Breaking Free of Oil
by Robert Zubrin
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