Murkowski's Got it Exactly Backwards

Senator Murkowski (R-AK) claims the Democrats are "punishing" oil companies for making a profit. The real problem is that the tax code punishes everyone else to give tax breaks to a small group of companies. Here's how it works:

A government needs a revenue amount, say 20% of GDP. To arrive at this figure, the most efficient method would be to set a flat tax on everyone such that they arrive at 20% of GDP. If Congress decides to give a break to say, oil companies, and want to keep 20% of GDP in revenue, then everyone else's taxes necessarily go up. Not only that; we have artificially lowered oil prices while raising the price of any viable alternative. So really, it is Republicans who are punishing everyone else except the oil companies.

This is a clear cut case of Congress being able to stop "picking winners and losers", which happens to be a Republican mantra I wish they would stick to; even when it applies to their base.