Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Taxing oil profits: Proceed with caution
CNN Money ^ | May 6, 2008 | Steve Hargreaves

Posted on 05/06/2008 1:41:16 PM PDT by rightwingintelligentsia

NEW YORK (CNNMoney.com) -- Politicians are eyeing oil profits like a fat juicy glazed ham.

With all the money Big Oil is making - the top five publicly traded firms pocketed over $120 billion in 2007 alone - and with an election on the horizon, it's easy to see why.

The leading Democratic presidential candidates want a windfall profits tax to do various things, and although their plans differ slightly they generally want to use the money to give Americans a break from skyrocketing energy prices and jumpstart research into renewable energy.

House Democrats have also warned of punitive measures if these massive profits continue at the expense of American consumers.

But while the politicians present their plans, analysts are far less sanguine about whether or not a windfall profits tax would actually help soothe steadily rising energy prices and spur R&D for alternative energy sources.

A consumer rights group says that windfall taxes could actually raise gas prices as oil companies might attempt to squeeze refinery production to recoup their lost profit.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy
KEYWORDS: economics; oil; windfallprofits
Navigation: use the links below to view more comments.
first 1-2021-29 next last

1 posted on 05/06/2008 1:41:17 PM PDT by rightwingintelligentsia
[ Post Reply | Private Reply | View Replies]

To: rightwingintelligentsia

LOL... Send any idiot who agrees with this back to economics class.


2 posted on 05/06/2008 1:41:54 PM PDT by pnh102 (Save America - Ban Ethanol Now!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia
whether or not a windfall profits tax would actually help soothe steadily rising energy prices

Somebody, ANYBODY, 'splain to me how adding a tax could IN ANY SCENARIO, "soothe" rising energy prices.

3 posted on 05/06/2008 1:44:27 PM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia

You know I almost wish they would tax big oil. maybe when that cost is passed on to us and gas goes up another 10 or 20% people will open their dang eyes.


4 posted on 05/06/2008 1:45:13 PM PDT by lakeman
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia

No liberal political agenda is ever complete without some class warefare and redistribution policy at its core.


5 posted on 05/06/2008 1:45:16 PM PDT by Red6 (Come and take it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: pnh102

Or send them to a history class on Jimmy Carter’s term.

Gas lines, anyone?

It is inconceivable to me that countries like Germany, France and England are lowering taxes (after years of slow growth and high unemployment) while our genius democrats continually want to raise them (after 8 years of low unemployment a 40+ quarters of 4 percent GDP growth or better)...

McCain has to win.


6 posted on 05/06/2008 1:45:41 PM PDT by Tulane
[ Post Reply | Private Reply | To 2 | View Replies]

To: pnh102

It might be unprofitable for these companies to produce oil some day. What happens when these companies go into another line of business instead?


7 posted on 05/06/2008 1:45:54 PM PDT by Sybeck1 (It's truly bad when your Savior in November is Judas Himself.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: rightwingintelligentsia

Ask any liberal, “How will taking money away from oil companies and giving it to the government make my gas cheaper at the pump?”.............


8 posted on 05/06/2008 1:47:07 PM PDT by Red Badger ( We don't have science, but we do have consensus.......)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia
"Politicians are eyeing oil profits like a fat juicy glazed ham.

Yeah, they kinda see it as their new "Tobacco" industry.

It's not kosher but think of all of the social and planet saving programs they could start with the money.

9 posted on 05/06/2008 1:47:15 PM PDT by R_Kangel (`.`)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Tulane
Or send them to a history class on Jimmy Carter’s term.

Or require them to read "Basic Economics" by Thomas Sowell.

10 posted on 05/06/2008 1:47:25 PM PDT by American Quilter (AIDS....drugs.......abortion......don't liberals just kill you?)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Sybeck1
What happens when these companies go into another line of business instead?

Oh, the government will get into the oil business. They always do a better job than private industry, don't they?

11 posted on 05/06/2008 1:49:50 PM PDT by Fresh Wind (Never underestimate the power of stupid people in large groups.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: rightwingintelligentsia
"...they generally want to use the money to give Americans a break from skyrocketing energy prices and jumpstart research into renewable energy."

If he really believes this I've got a bridge to sell him.

12 posted on 05/06/2008 1:50:18 PM PDT by joebuck (Finitum non capax infinitum!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia

Is there a chart showing how much oil companies made say from 1990 to present?


13 posted on 05/06/2008 1:51:58 PM PDT by wolfcreek (I see miles and miles of Texas....let's keep it that way.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia

You know, maybe we should let the idiots in Congress, and all lefties and unprincipled moderates and independents have their way on this. When gas hits $6 a gallon, I will at least have a happy shining moment of ‘I told you so.’


14 posted on 05/06/2008 1:52:34 PM PDT by JamesP81 ("I am against "zero tolerance" policies. It is a crutch for idiots." --FReeper Tenacious 1)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia

Does anyone know what oil companies “do” with their profits? Do they take their wives for a night on the town? Do oil companies build pleasure palaces of gold plate?

Or do they not fund projects that put millions of people to work, drilling, building, doing just that much more of what oil companies do?

“Profit” left in private hands gets re-invested in productive enterprises. “Profit” taxes away by government gets you more government. You can spend your energy dollars on energy projects run by people who know the energy business, or you can spend your energy dollars on pet projects run by lawyers, professors, and politicians.


15 posted on 05/06/2008 1:52:37 PM PDT by marron
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia

This is laughable. What is “Big Government” doing with the huge tax windfall they already recive from the oil companies? If you look at Exxon Mobil’s earnings report, while their net income was about $11 billion in the first quarter, they paid nearly $30 billion in total taxes!


16 posted on 05/06/2008 1:54:30 PM PDT by Olydawg
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia

Would someone please define what a ‘Windfall Profit’ is.


17 posted on 05/06/2008 1:56:26 PM PDT by Ditto (Global Warming: The 21st Century's Snake Oil)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Ditto

And don’t think it stops with oil...the housing industry, multifamily apartments, slippery slope it is...

It is a very bad day for american business, and if either tweedle dee or tweedle dum get in the white house, it will be worse.


18 posted on 05/06/2008 2:03:14 PM PDT by Tulane
[ Post Reply | Private Reply | To 17 | View Replies]

To: Red6

of course they always ‘forget’ to mention the $3 billion a month or so the governmnet takes in a month in oil taxes

so who is really making the “windfall profits’

reminds me of cigarette taxes
the government now makes more from cigarettes than the cigarette companies do
taking millions a dollars a year from cigarette sales all while slamming the cigarette companies for how evil they are for selling a product that kills people


19 posted on 05/06/2008 2:04:50 PM PDT by edzo4
[ Post Reply | Private Reply | To 5 | View Replies]

To: rightwingintelligentsia

Big oil is making nothing compared to Big Farming...


20 posted on 05/06/2008 2:05:47 PM PDT by MD_Willington_1976
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-29 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson