Windfall Taxes — Class Warfare

If you’ve seen me on “Bulls & Bears,” “Fox & Friends,” or “Your World” lately, you know you only have to raise the topic of “windfall taxes” to get my blood boiling. Boy, talk about political pandering! Why, it’s the classic case of stuff that sounds good, but is just plain silly. In fact, it’s another example of “class warfare,” where the liberal side of Congress wants to turn the United States into the People’s Republic of America, where those doing well are consistently penalized!

Now forget for a moment that companies like Exxon already have to pay 35% of their profits to support a government that takes in trillions. Forget the fact that a windfall tax acts as a disincentive for those very companies to invest further. Forget that fact that we enjoy lower gas prices than just about every European country and most Asian countries.

No, the fact is that if we use a company’s stock price for how well it’s performing, a company like Exxon has merely kept pace with the S&P for the past 20 years!

XOM is doing quite nicely now. But, what about only six years ago, when it was underperforming the S&P? Was there any talk then about a rebate to those same companies? Or what about the past 20 years when the company fared no better or worse than the other 499 companies in the S&P?

Of course, if you yearn for long gas lines, $5 a gallon gas, and a tax system that penalizes companies for taking risk and doing well, then by all means support a windfall tax. If you want to see America grow and prosper, though, you’ll opt out!

This weekend our Business Block has much more with "The Chartman." Tune in Saturday 10am - noon ET.

Gary B. Smith is a contributing editor for and a regular commentator on "Bulls & Bears."

Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."