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Obama Poses Windfall Profits Tax on Oil Companies
4/8/2008 | econjack

Posted on 04/09/2008 1:11:54 PM PDT by econjack

Obama's newest TV ad tells about Exxon making $40 billion and how he's going to institute a windfall profits tax on the oil industry. Let's consider that idea.

First, taking money away from the oil companies helps me at the pump by...??? It seems to me that the windfall profits tax ends up in Washington or in some politician's freezer. I fail to see how that lowers the price I pay at the pump. More than likely that money will get sucked off into new programs that make people more dependent on the gov't...not what I want.

Second, while you may not like the oil companies, they do explore, drill, produce, refine, and distribute oil products. The economics of the situation tells me that some part of their profits will be used to produce more oil. On the other hand, sending a new tax to Washington does nothing to increase the supply of distillate fuels.

Third, you can't fool me again. You tried the tax idea before (e.g., the Alternative Fuel Tax) back in the 1970's and I'm still waiting to see some new fuel that you hacks in Washtington produced.

If you want to lower our cost at the pump, how about this:

1. Kill the federal taxes on gasoline and diesel fuels, at least in the short run while new supplies ramp up.

2. Offer incentives for states to abandon their fuel taxes, at least until new supplies come on line.

3. Have the EPA mandate only three blends of gasoline. As recently pointed out:

"As recently as the early 1990s, the nation's gasoline supply was fungible. The same regular, mid-grade, and premium fuel was sold from coast to coast. But today, we have a bewildering variety of gasoline recipes in use across the country. Each of these specialized blends was designed to help clean the air, but the decade-old track record for the experiment in boutique fuels indicates that it has done more economic harm than environmental good.

"Nobody even knows for certain how many different gasoline blends are in use at any given time. AAA has put the number at "more than 15." One pipeline operator says it has to cope with 38 types of gasoline, many of which have to be shipped on a segregated basis. Sen. John Kerry has made a campaign promise to simplify the 'more than 300 local and state fuel regulations in the U.S.' "(http://cei.org/gencon/019,04157.cfm)

If the tree huggers want to complicate things, let them pay higher prices through a voluntary donation to Washington.

4. Streamline the process of permitting new power plants and refineries. The current process is so bad that there hasn't been a new refinery built in two decades and the same is true for power plants. If Teddy gets PO'ed at seeing windmills in his ocean view, too bad. Perhaps he can just get in his car and take a long ride over a bunch of no-railing bridges.

5. Read a book on economics. Politicians have no clue how the economic system works. It's high time they learned.


TOPICS: Government; News/Current Events; Politics/Elections
KEYWORDS: blueturban; epa; obama; taxincrease; windfallprofits; windfallprofitstax
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Obama's same old political trick of getting more out of your pocket.
1 posted on 04/09/2008 1:11:54 PM PDT by econjack
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To: econjack

Hussein Obama is this country’s worst nightmare, that is outside of Hildabeat.


2 posted on 04/09/2008 1:13:40 PM PDT by AxelPaulsenJr (God Bless George W. Bush)
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To: econjack

We could have the tree huggers purchase a tree tax credit from algore.....


3 posted on 04/09/2008 1:13:57 PM PDT by illiac (If we don't change directions soon, we'll get where we're going)
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To: econjack

Good article

But unfortunately, nobody would even be allowed to pose that question.


4 posted on 04/09/2008 1:14:42 PM PDT by wastedyears (The US Military is what goes Bump in the night.)
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To: econjack

This is utter BS...the oil companies profit margins are 10%...10%!!! Would the brainless Osama have them operate for free? Would the idiots in the democratic party tax their friends in Silicon Valley since their profit margins run 50%....????? These stupid assholes.....total braindead fools!


5 posted on 04/09/2008 1:14:45 PM PDT by Alright_on_the_LeftCoast
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To: econjack

I’ve seen both the rat candidates referred to as socialists. That is just not accurate. They are both communists.


6 posted on 04/09/2008 1:15:47 PM PDT by Graybeard58
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To: econjack

Did Obama mention that Exxon paid $30B in taxes in 2007?


7 posted on 04/09/2008 1:15:59 PM PDT by ltc8k6
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To: econjack

I propose a windfall profits tax on politicians.


8 posted on 04/09/2008 1:16:33 PM PDT by rightwingcrazy
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To: econjack

Yeah so Obama can add to the 120 billion in taxes the government made off of Exons 40 billion in profit.


9 posted on 04/09/2008 1:17:08 PM PDT by CommieCutter
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To: econjack

Hmmmmm....following in the steps of Mugabe...and Chavez? How special.


10 posted on 04/09/2008 1:18:03 PM PDT by goodnesswins (Being Challenged Builds Character; Being Coddled Destroys Character)
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To: Graybeard58

Bravo for telling it like it is..


11 posted on 04/09/2008 1:19:59 PM PDT by vietvet67
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To: econjack

Every day we get closer and closer to seeing what Jimmy Carter’s Second Term would have been like...


12 posted on 04/09/2008 1:20:51 PM PDT by PigRigger (Donate to http://www.AdoptAPlatoon.org - The Troops have our front covered, let's guard their backs!)
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To: Alright_on_the_LeftCoast
This is utter BS...the oil companies profit margins are 10%...

You're absolutely right. But, when I ask students what they think about the idea, they think it's great. When I ask what the profit margin is for the oil companies, they say "over 100%". Obama misleads the public by stating Exxon "made $40 billion", when that's actually total sales, not profits. Smart people (i.e., us Freepers) need to spread the word about this BS before it gets out of hand.

13 posted on 04/09/2008 1:24:18 PM PDT by econjack (Some people are as dumb as soup.)
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To: econjack
A windfall tax on oil company profits will induce the company to be less profitable to avoid the tax. That in turn will result in less gasoline production. We'll be back to waiting in line by the last digit of our license plates and paying much higher prices for a scarce commodity. Marxists like Obama and Hillary love the accolades that attacking big corporations brings them with the mush for brains leftists who support them. They know the "little people" are too stupid to comprehend their real intent.
14 posted on 04/09/2008 1:24:25 PM PDT by Myrddin
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To: PigRigger
Every day we get closer and closer to seeing what Jimmy Carter’s Second Term would have been like...

LOL! Actually, I did pretty well with some zero-coupon bonds thanks to Jimmy's 21% prime interest rate!

15 posted on 04/09/2008 1:26:16 PM PDT by econjack (Some people are as dumb as soup.)
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To: econjack
Odd days or even... it'll look the same.


16 posted on 04/09/2008 1:28:30 PM PDT by johnny7
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To: econjack

If we had a windbag profits tax, Obama and the rest of the liberals would be broke.


17 posted on 04/09/2008 1:28:59 PM PDT by Argus (Obama: All turban and no goats.)
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To: PigRigger

Success Tax.


18 posted on 04/09/2008 1:30:15 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: johnny7

I remember driving my VW bug from Omaha back to my parent’s house in Ohio in the early 1970’s with two 5 gallon cans of gasoline in the back seat “just in case”. Talk about dumb!


19 posted on 04/09/2008 1:31:09 PM PDT by econjack (Some people are as dumb as soup.)
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To: econjack
In 1960, Reagan wrote a letter to Nixon on JFK. It could easily apply to Obama today.

"Unfortunately, he is a powerful speaker with an appeal to the emotions. He leaves little doubt that his idea of the 'challenging new world' is one in which the Federal Government will grow bigger and do more and of course spend more.... Under the ... boyish haircut is still old Karl Marx ... There is nothing new in the idea of a Government being Big Brother to us all."

20 posted on 04/09/2008 1:31:44 PM PDT by Reagan Man (McCain Wants My Conservative Vote --- EARN IT or NO DEAL !!!)
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