Biden is Talking Gibberish Again

well folks just days before the midterm

elections Joe Biden is now promising a

windfall taxes against energy companies

specifically companies like Exxon and

Chevron who have absolutely Blown Away

earnings with billions in profits that

if you just take exxon's earnings and

compare it to the estimated earnings for

Amazon Proctor and Gamble and Tesla

combined you still have more profits

over at Exxon than you do it all of

these companies combined now of course

the actual implication of Biden

suggesting there will be windfall taxes

against energy companies in order to

encourage them or force them to lower

the price of gas at the pump is probably

relatively unrealistic and that's

because right before a midterm election

it is unlikely we're going to see any

kind of new taxes and after the midterm

election where Democrats are almost

surely going to lose the House of

Representatives and may lose use the

Senate as well we don't actually believe

any new taxes will be passed on even if

new taxes were passed on generally

higher taxes just increased costs for

consumers not actually forcing energy

companies to lower their costs look for

example at California California has

some of the highest state fuel taxes for

for gasoline and what you find is that

gas prices in California are about a

dollar higher than they are anywhere

else it's also more expensive to truck

gasoline in California due to uh you

know in a day additional Trucking

requirements placed on truckers and

limitations on refining within the state

of California that really leave

Antiquated 1970s technology still

operating when it could be updated to

more efficient technology and so what we

usually end up with is less efficient

refining more taxes paid not by big

companies but instead by consumers and

so unfortunately the idea that hey let's

just tax our way to lower gas prices is

one that might sound good to a certain

cohort of Voters but rarely actually

works from an economic point of view

generally companies just pass on that

cost to Consumers now we don't actually

believe that the Biden Administration is

really going to be able to accomplish

anything after these midterm elections

as they lose either the house or

potentially the house and the Senate and

we end up with essentially a lame duck

final two years here of the Biden

Administration who knows maybe we'll get

sort of a new Biden Administration with

Democratic control again in 2024 or will

flip to Republican but at least for the

next two years as far as we can sort of

look out right now it's not looking too

good for Democrats and I hate to say it

but this messaging from Joe Biden that

windfall taxes are coming to energy

companies is probably going to fall

heavily on deaf ears now for this

windfall tax is likely to be meaningless

and just rhetoric