Dumbest Idea in the World

Okay, maybe hyperbole isn't the right approach, but can someone please tell me how in the name of God's green Earth a windfall profits tax is going to lower gas prices? I just don't see it. So, I'm supposed to trust the government to give me money that they collect in taxes. Has this ever worked before? What will happen is that the tax will be imposed, corporations will raise the prices they charge to cover the tax, no money will be returned to the people, and we will be right where we are at the moment.

The notion that companies will reduce their prices to get out of paying the tax is completely ludicrous. First off, let's assume that the big oil companies (ExxonMobil, BP, Shell, etc.) directly controlled the price that is charged at the pump. Why would they reduce the price the charge below the price they paid? As crude supply price keeps rising these corporations would lose more money then if they charged higher prices and paid the tax. Of course, this is in the alternate reality that assumes that big oil companies control the price that you as the consumer pay at the pump. The owner of the gas station sets the price at the pump. Yes, the oil companies own some stations, but by and large, small, independent companies that would not fall under this tax own the stations. This would be like charging a profits tax on Proctor & Gamble. P&G sells nothing directly to the consumer, they sell their products to Wal-Mart, Target, or your local grocery store who marks it up and sells it to you. So, how is the profits tax on P&G going to lower prices that you pay for dish detergent?

The real tragedy is that politicians are playing the American public's heartstrings to get votes. Not a big surprise, this is what politicians do. However, a Windfall Profits Tax is essentially and indirect price control and we know how well those worked out the last time.