Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: Al B.; catfish1957
Thank you, Al, for a heartening response. I have just spent the past few hours reading and clicking further links so I can be certain that Cfish is indeed misleading folks.

Cfish, you need to prepare to be smacked harder and better everytime you bring up the false analogy using the scaremongering semantic "windfall profits tax."

Al notes:

4) It is distinguished from a true windfall profits tax in that there is no attempt to limit oil company profits from drilling in Alaska. Drill more, make more.

On three different blogs where this topic was discussed before Palin was even named by McCain as his VP pick, it was pointed out AGAIN and AGAIN: a "windfall profits tax" is based on the total profits of a company after the fact.

This usage fee is based on units produced independent of total or net profits made by the company, and is graduated based on the selling price of oil rather than a flat fee. The more supply of oil on the market, the lower the price of oil; the more that oil companies produce, the lower the land use fees (or taxes, if you want) they will pay to Alaska.

When the fee was a flat rate, as it was before Palin became Governor, oil companies had incentives to restrict production in order to restrict supply because it would drive up the price of oil. This way, they have incentive to INCREASE production because the lower the price of oil, the less tax they have to pay on what they produce.

It is not a windfall profit tax because it isn't based on the profit a company has realized, it's based on the price of oil per barrel at the time that the company produces the oil on Alaska state-owned land.

496 posted on 01/24/2010 3:01:29 PM PST by Finny ("Raise hell. Vote smart." -- Ted Nugent.)
[ Post Reply | Private Reply | To 493 | View Replies ]


To: Finny
When the fee was a flat rate, as it was before Palin became Governor, oil companies had incentives to restrict production in order to restrict supply because it would drive up the price of oil.

And they had incentive to pay off politicians to keep it that way. That incentive is gone thanks to Palin and the legislature, through the enaction of ACES.

Drill baby, drill.

497 posted on 01/24/2010 3:09:32 PM PST by Al B. (Sarah Palin: "Buck up, or stay in the truck.")
[ Post Reply | Private Reply | To 496 | View Replies ]

To: Finny
LOL....You fools still didn't directly answer the question. I don't care how you spin it. When the graduated tax rate goes up as the price of oil goes up (profits)...... That is a windfall profits tax. You Palinites can stick together all you want, but the defintion is the defintion. I think most people here have the snap to discern the truth.

Tools.

499 posted on 01/24/2010 7:31:08 PM PST by catfish1957 (Hey algore...You'll have to pry the steering wheel of my 317 HP V8 truck from my cold dead hands)
[ Post Reply | Private Reply | To 496 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


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