Posted on 02/01/2006 9:55:30 AM PST by SirLinksalot
Oil Bashing, Round Two How about a windfall pundit's tax on high TV ratings?
Public companies typically advertise higher earnings, but such is the politics of energy in Congress these days that Exxon is blitzing the media with ads playing down its record 2005 profit of $36.1 billion. The last time Big Oil reported earnings, industry executives were paraded before the Senate, grilled about high fuel prices and threatened with special taxes--so the reverse PR blitz is understandable.
Of course, Exxon is guilty only of responding to a market need, and its earnings are nothing to apologize for. As a nation, we want energy companies investing in increased production, and Exxon and others currently have the wherewithal to undertake those investments. The worst thing for the economy right now would be to have American oil companies in no better shape than Ford or GM.
SNIP SNIP SNIP
Some of the same politicians calling for these punitive measures also fantasize about "energy independence," while blocking methods to achieve it. Washington Senator Maria Cantwell, for instance, has sent letters to regulators demanding investigations into why there aren't more refineries in the U.S., but she supports restrictions on refineries in Puget Sound. SNIP
This being an election year, we can expect this sort of political posturing to get worse. It's a special shame, however, that some in the media have decided to join the demagoguery in search of higher TV ratings. Not that an economics education is a qualification for punditry. But if windfalls are so terrible, then perhaps these media stars will be good enough to pay higher taxes on any "windfall" ratings they receive from populist TV demagoguery. At least oil companies provide a product we can't do without.
(Excerpt) Read more at opinionjournal.com ...
The ROI (return on investment for those in Rio Linda) for oil companies is right around 8%, which actually is in the low-end of most profitable companies in other industries.
Thats fine, I can cut my cable service the second I feel it's no longer worth the cost and my family won't go hungry or freeze to death when I do.
Probably referring to Bill O'Reilly, who almost always "steps in it" when he opines on economic/military matters - stick to bashing the ACLU, Bill.
Bill doesn't understand the fundementals of commodity trading, that oil/gas are openly traded commodities and that rumors can spark buying/selling resulting in price spikes & troughs.
Speaking of taxes, the government has generated a windfall of taxes, stste and federal, from high oil prices and oil company profit. It's time for the government to share its record revenues.
Funny how the talking heads NEVER ask what is the maximum profit as a percentage a company should be allowed to make before "windfall" taxes kick in.
Oh a windfall tax on movies that gross over $50 million. Gee, it just is not fair a movie costs $13 million and rakes in over $100 million. Surely they can afford a 50% windfall tax.
Do it then .. so you can afford gasoline at a price dictated by supply and demand.
Great article!
As long as you're supporting confiscatory taxes, let's tax the excessive salaries of sports figures, talk show hosts, and the movie industry. Why stop there? We could go for full blown socialism.
Darn right!
And, I might add, to share it with we the American taxpayers, not the PA or some AIDS in Africa nonsense.
I think the Government should TAX everything EXCEPT Income!
An Income Tax is regressive, A SALES TAX is not!
The biggest crime ever commited was allowing payrol withholding from our wages. If Americans had to write a tax check each year MORE would demand a change!
Sure, when it comes to that. I will devote my life and my wealth (what there is of it) to buying energy.... Actually I've made a few changes in my lifestyle and home that may prolong the need to do that.
Besides I'm sure these corporations pay a fair percentage on all of these profits......right?. Right?
from Exxon Mobil's most recent quarterly report:
4th quarter Income before income taxes: $17,718 billion
4th quarter Income taxes: $7,008 billion
2005 Income before income taxes: $59,432 billion
2005 Income taxes: $23,302 billion
damn, 23 billion dollars in taxes .. aren't FACTS a bitch
You know what else real ... I'm done. You and I both know your "mind" is already made up.
I'd settle for a "windfall profits tax" on Hollyweird - any movie that makes back more than 10% above costs gets taxed heavily, and any actor/director/producer who makes above minimum wage (i.e., all of them) gets taxed at a 90% marginal rate. Let's see how Baba Streisand likes that?!?
p.s. I'm really against all such asinine liberal schemes as any "windfall profits tax" but it would be fun to tweak the liberals/RINOs with the scheme above.....
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