Posted on 06/13/2008 8:39:49 AM PDT by Sub-Driver
How a Windfall Oil Profits Tax Would Hurt You By Elizabeth MacDonald
We are witnessing a new round of stiffnecked fulminations over the need for a new windfall tax on oil profits from elected officials who know nothing about economics and the impact their legislation has on US taxpayers.
A growing number of Congressmen want to enact a windfall profits tax to punish what they see are greedy gougers in the oil industry.
Democratic presidential candidate Barack Obama has piled on, too, and is now exploiting anxiety over high gas prices by pledging to enact a windfall profits tax on U.S. oil companies if elected.
I think there must be a secret new “unlimited minutes plan” for t.v. sound bites from elected officials that the networks are selling when it comes to talk of a windfall tax on oil profits.
The attacks from vote-getters are what has been called shooting populist blanks, as the Wall Street Journal editorial page once quipped. It reminds me of this saying, that reaching a conclusion is often where the mind comes to rest, as one pundit put it.
(Excerpt) Read more at emac.blogs.foxbusiness.com ...
Marxine Waters jumped the gun, wanting to “nationalize” the oil industry. The rest of ‘em have the same goal, and a windfall oil profits tax is just an interim step. They are just a bit smarter, and don’t state the ultimate goal.
A winfallprofits tax would mean one thing, higher gas prices for all. I still can’t figure why we should reward Washington for higher gasoline prices. If gasoline suppliers were really gouging anyone then the logical thing would be to address the gouging at the pump level so that they would take in less profits not tax them and send more money to Washington. The problem is that the Democrat congress knows it can not prove the contention that suppliers are gouging anyone.
The Democrat party particularly has been gouging all of us with the increasing cost of government as well energy. The cost of government which has been rising by thousands of dollars per man woman and child with no end in sight. That is the gouging we should be addressing.
it’s not like the oil companies would pass this on to the consumer you know. it’s not like the governmenet isn’t trying to create a new revenue stream from us to them or anything...
Adding taxes does what? ADDS TAXES.
How does that help lower a price of any kind? And how in the world can so many be so dense as to support such nonsense. It’s just more immature people thinking they can “stick it” to someone else. Misery loves company and the left is so terribly miserable.
I’m not sure if an increase in income tax (windfall tax) would necessarily impact the consumer like a consumption tax (sales tax) would. I am sure it would have some and certainly take away from a company’s ability to do exploration and extraction of additional oil, but supposedly they are not allowed to do that anyway.
How about the government giving back “windfall taxes”.
Any person that supports this “windfall profits tax” on a company that made 8.3% should also support a “windfall profit tax” on 401K’s/Roths/etc. that perform at any rate better than the oil companies.
I suggest a windfall profits tax on “Big Legal”
Not to mention that a windfall profits tax on the oil companies removes profits from owners. Owners are nearly all retirement funds, mutual funds and nearly anyone that has a stake in the market. These Democrats actually want to take money out of your retirement account!
If you have the capability and time, check out the beginning of yesterday’s Dave Ramsey show. You can get to his archives at www.daveramsey.com . He has a very good rant about the price of gas.
That’s the “beauty” of a windfall profits tax. When applied to huge, commodity markets, it allows you to indirectly increase taxation. The Government takes 10% more of the profit of “Big Oil”; but consumption is already dropping (because of the high prices), so “Big Oil” does a cost-benefit analysis. They’ll end up jacking prices to compensate, but will not raise them the entire amount required to cover the extra tax because that will further depress consumption.
It’s a way for Government to increase their take, “Big Oil” will pass a good chunk - but not all - of the costs on to the consumer (living with a little less profit margin), and the Government can scream again at “Big Oil” for ever increasing absolute dollar amounts (never mind the actual percentage margin). Allowing for increased windfall profits tax.
And when the oil bubble pops, those same windfall profits taxes will not be repealed. Instant permanent tax increase over a major part of our economy.
The biggest thing I fear is a Democrat-controlled Government - both the Congress and the Presidency. Nationalization of healthcare - 12% of our GDP - is a given; however we will also see a push to nationalize energy like never before. That will be another 10% of our GDP. Add in the 23% of the GDP the Government already gets (annual Federal budget versus the total GDP), and you’ll see the Feds directly controlling nearly 50% of the total GDP of the nation.
Yeah, I'd like to know what their profit is. Probably about 80% after you take out legal pads, secretaries, and offices. And limos.
It's even more amazing that it needs to be explained to Presidential candidates.
It is highly unlikely the companies will be nationalized as long as the Dems own such a large percentage of them.
Maxine, BTW, is dumb as a board. She is literally the stupidest person to ever sit in Congress.
Oil companies spend more on taxes than on oil supply development
American Thinker | June 13, 2008 | Christopher Alleva
Posted on 06/13/2008 1:25:37 PM PDT by neverdem
http://www.freerepublic.com/focus/news/2030749/posts
Gas-Gate: The Democrats’ Election Year Plan To Keep Gas Prices High
The Patriot Room | June 13, 2008 | Bill Dupray
Posted on 06/13/2008 7:46:51 AM PDT by Bill Dupray
http://www.freerepublic.com/focus/f-gop/2030584/posts
Oil Expert: Dem House Leader Steny Hoyer Misleads CNBC on Oil Lease Drilling
businessandmedia.org | June 13, 2008 | Jeff Poor
Posted on 06/13/2008 8:29:18 AM PDT by Rufus2007
http://www.freerepublic.com/focus/f-news/2030609/posts
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