Rendell projects that his tax will generate $720 million each year from any profits by oil companies that operate or sell within Pennsylvania's borders.
What this tax will do is be the catalyst for skyrocketing fuel prices and fuel shortages across the state. This will adversely effect public transit and keep them in the same exact situation they are in now while the citizens of the state have to pick up the tab through higher costs for everything.
The cost of the tax will be passed onto the consumer through higher fuel prices. In addition to costing even more to fuel a private auto, public transit as well as trucking and rail companies will be hit hard. This will force transportation costs to rise and that will be passed off to the consumer through higher prices from food, clothing, electronics and everything else the public takes for granted.
Also, given the long term history of tax money being funneled off for other things, much of this "windfall" won't end up in the public transit coffers but into political pet projects and other governmental agencies that will be screaming for their fair share of the pot of gold.
Fast Eddie's proposal is not sound. Even the spendthrift State Legislature and people from Rendell's own party see this. If rammed through, all Pennsylvanians will feel the sting from it and public transit will not be saved.
Let's face the facts here. Oil companies will pass on the costs and if the tax proves too expensive to operate in the state, they'll pull out. Shortages will then occur that will spur even higher prices due to the shortages.
This tax isn't just on "Big Oil" either but the entire oil structure within the state border. From the small wells to the retail outlets and everything in between, all will be taxed under Rendell's windfall profit proposal. Small mom & pop operations all the way up to BP will be effected and nobody will be spared.
This is just another "feel good" law that plays off the public outrage over higher prices. Punishing "Big Oil" for being greedy is a big business these days in Liberal circles and is based not off of facts but feelings. These knee jerk reactions will only serve to further destroy this state.
To quote my favorite radio host, Jim Quinn and Quinn's first law: "Liberalism always generates the exact opposite of its stated intent." Fast Eddie's windfall profit tax is a perfect example of this.