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Monday, May 05, 2008

Kalin Responds: Part 1

Back on April 23, Rep. Mark Buesgens (Jordan) reminded us at the Post Review that Rep. Jeremy Kalin (D-17B) voted for a 42% increase in the gas tax.

While local writers have not be able to get Kalin to respond, his fellow Representative did. Thank you Mr. Buesgens. Read Kalin’s response.

As is typical, Kalin admits to only a 2¢ gas tax increase, ignoring the increase coming in October and the several cent increase in years to come. It just seems to be impossible for a Dem to tell the whole truth.

Then he proposes a 3 point plan to get the US Congress to reduce gas prices. By the time his proposal might be adopted, the Strategic Petroleum Reserve could be 100% full anyway so it would take care of itself. In the end, even he admits it might not drop the price per gallon any more than he raised our gas tax.

Second, buying directly from Iraqi oil fields may reduce our cost slightly, but then why should the Iraqis absorb the loss which is our gain? Is that fair? How long can we buy on the closed market? Closed markets are not open and free markets. Closed markets disrupt the economy.

Third, I too would like to see the US get out of the subsidy business. But if Kalin gets the feds to eliminate the $51 billion in subsidies to the oil companies, what do you suppose will happen? Gas prices will rise! It’s as simple as that.

So we can have $3.50 per gallon gasoline plus the hidden cost per gallon that we pay out of the other pocket to cover the $51 billion in subsidies. Or we can have $3.50 per gallon gasoline plus the recognizable cost per gallon that the oil companies will charge to cover the $51 billion in subsidies that they formerly got out of our other pocket.

If we should get rid of subsidies for BIG OIL then let’s get rid of the subsidies for BIG ETHANOL and BIG WIND.

Here in Minnesota, Kalin supports subsidized alternative energies (corn and cellulosic ethanol, wind) to help cut our dependence on foreign oil. With his 3 point plan, we are still as dependent on the foreign market as before and just as costly.

It would be far more effective if Kalin asks the feds to allow drilling in ANWR and off-shore and to create the environment in which new oil refineries can be built. Prices comes down when supply goes up. That is a basic concept in the OPEN market which he would understand if he were a true fiscal conservative.

So far, Kalin’s efforts are to pinch the oil hose to restrict the flow.

Kalin has the audacity to take BIG OIL to the woodshed for making a profit per gallon that is far less than state and federal gas taxes per gallon. He loves BIG GOVERNMENT and hates BIG OIL. His 42% tax increase is fine. BIG OIL's much smaller profit percentage is abhorrent. That’s chutzpah.

See this post.

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