Republicans Claim Cutting Taxes on the Rich Will Lower Gas Prices

Republicans like Mitch McConnell are pushing the idea that if America lowers taxes on the wealthy and corporations, the price of gas will fall.

Here is the video from CNN:

Transcript:

CROWLEY: But, senator, just in terms of the fairness issue, which is very important to Americans and to politicians, one hopes, the oil companies are making record profits, and yet taxpayers are paying for these loopholes for oil companies, which are basically tax breaks. And so just on the face of it, sir, it certainly does seem to a lot of Americans that people who are making record profits shouldn’t be taking taxes that we’re paying on April 15th, to get their tax breaks.

MCCONNELL: Well, you know, with all due respect, you’re using all the Democratic talking points. And that’s all quite interesting.

CROWLEY: Well, I use the Republican ones for a Democrat. So, you know.

MCCONNELL: All right.

But let me make the point again in case anybody missed it. The issue is the price of gas at the pump. If you raise taxes on the producers of gasoline, you drive the prices even higher. Does anyone think we need higher gas prices when they’re already at $4 a gallon?

I mean, this is not the way to lower the price of gas at the pump. This is not so much about a diversion, about discussion of fairness. We do need to reform the whole tax code. We’re in favor of that. It’s been 25 years since we actually reformed the tax code. As of today, we have the highest corporate tax rate in the world. As of April 1st, the highest corporate tax rate in the world. And some people may think, gee, that’s great. All that does is make our companies uncompetitive. And even the president himself has said we need to get a corporate tax rate down.

At the same time, he’s trying to selectively raise taxes on some corporations, and to do that would drive the price of gas at the pump even higher. This is a terrible idea.

Mitch McConnell was arguing that if we lower taxes on corporations, and he also favors more tax cuts for the wealthy, than gas prices will come down. He claimed if the country does what President Obama and the vast majority of Americans want to do, which is to get corporations and the wealthy to pay their fair share gas prices will go up. This is also the same logic that Republicans used to justify billions of dollars of annual subsidies to Big Oil.

The problem with McConnell’s claim is that it isn’t true. George W. Bush signed the most sweeping reduction in corporate taxes in two decades in 2004, but by 2008 gas prices hit record highs. There is no correlation between tax rates and the price Americans pay at the pump. Obama isn’t causing the price of gasoline to rise because he wants the wealthy and corporations to pay their fair share. The price of gasoline is rising because the wealthy and corporations are driving prices up through speculation.

The McConnell cutting taxes will lower gas prices is a talking point that you can expect to be repeated by Republicans and their media outlets far and wide this week. Trying to tie their unpopular idea that the rich and corporations shouldn’t pay their fair share to blaming Obama for gas prices is not only bad politics. It is an insult to the collective American intelligence.

The Republican world view has become that the United States will be a utopia for all if the wealthy and corporations are given everything that they desire. They have taken their ideological bedrock that a rising tide lifts all boats to an absurd extreme.

Every time it looks like the Republican Party couldn’t possibly have a lower opinion of the American people, they do something that demonstrates just how dumb they really think we are.

10 Replies to “Republicans Claim Cutting Taxes on the Rich Will Lower Gas Prices”

  1. When the tide rises, the occupants of the boats that are tightly anchored drown. By now, that’s most of the USA.

  2. There couldn’t possibly be a more absurd argument to cut taxes for the rich and their corporations than to tie them to gas prices. But leave it to McConnell to assume all Americans are lunatics who believe his sophistry, and sadly, his assertion will play well to stupid Americans who support the GOP whatever the cost to keep an African American out of the Oval Office. Absolutely disgusting.

  3. Saw a commercial during the Houston Open PGA tourney that directly blames Obama, his lack of new drilling in Alaska, and his denial of Tar Sands for the ‘doubling of gas prices.’ Now, since we are drilling more and using less, and exporting more, and since the filthy tar sands oil belongs to CANADA, who is just using the USA as a conduit to ports for supertankers that they can’t manage, who are they kidding? The GOP is useless, just useless. And now they are dangerous…if what they want happens, our freedom is gone, our way of life is gone, and you might as well be ready for the drug lords to move in, and the USA becoming a Third World nation, as Arianna warned us about. Sickening…get out and vote…it’s our last chance to save this republic.

  4. Well, he’s actually right, in that if we return to the policies that crashed the economy in ’08, they’ll crash the economy again, resulting in lower gas prices like we had in January ’09.

  5. McConnell has no honor left, if he ever had any at all, because he sits his azzz up on national TV and lies through his teeth. I’m sick of all of them–Boehner, McConnell, Gingrich, Walsh, Bachmann, Ryan, Kyl, Blunt, Johnson, the Pauls, etc. If every time they told a lie a little piece of their tongue would fry and fall off, they’d all be talking gibberish, and that might actually be an improvement. It’s no wonder that all of their 2012 candidates lie–it seems to be the GOP way.

  6. I suspect they’re using the “voice of authority” combined with stoking people’s prejudices against minorities to get their message past people’s brains.

    UGGH. I just wish something would come along like back in the 70s… when they caught the oil companies colluding in a lie about producing diesel vs gasoline (said it was more expensive when in reality it’s far cheaper). They were raping the businesses who depended on trucking (and trains and some ships) to move goods.

    They forced the gas companies to drop the price of diesel – I remember it fairly well, although I didn’t use diesel. This crop of politicians (Republicans), however, are even more bought and paid for by Big Oil (shoot – Big Business in general) and are preaching the corporate line.

    Last night I had a very pleasant dream… I dreamed I somehow was attacking those politicians and forcing them to speak the truth – the whole truth. They were made to be incapable of telling lies or trying to deceive people… and all of their Republican/Tea Party supporters were horrified at learning just how badly they’d been lied to and manipulated. (It saved the country and a lot of preachers and politicians – and rich people – went to prison.)
    I just wish such a thing were possible.

  7. A chart just out on another web site shows the effective corporate tax rate in the US is 13.9%.
    That low enough for you McTurtle? And why do the rich need more money to reduce gas prices? He is an idiot, liar, pond-scum of a human being and should be removed from office.

  8. As we all need tax relief, do you really think it is fair to lower the taxes of the rich and not the less fortunate? It seems a bit twisted.

Leave a Reply

Your email address will not be published.