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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
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To: rightwingintelligentsia
It is so upsetting listening to democrats on energy, they list things that cannot possibly produce more energy or lower prices.

First they say the oil companies make too much, are evil, and they will take the money from big oil. OK, that cannot possibly lower prices.

Then they talk about energy alternatives and using less energy. Obama even said it will "cost" Americans to grow a "green" economy. So they are NOT planning to lower prices with this, the alternatives REQUIRE higher energy prices.

They preface all this with no new oil because it will take 10 years to start flowing. As if ten years is forever, meanwhile they offer nothing that can help in the next 10 years.

The democrats deliberately are making energy cost more, and the stupid republicans will pay at the polls for this. Outrageous.

21 posted on 05/06/2008 2:09:57 PM PDT by Williams
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To: rightwingintelligentsia

Doesn’t big oil already pay a 35% federal corporate income tax on these profits and their share holders also pay capital gains tax on their earnings? Sounds like these “obscene” profits are double taxed already.


22 posted on 05/06/2008 2:18:14 PM PDT by The Great RJ ("Mir we bleiwen wat mir sin" or "We want to remain what we are." ..Luxembourg motto)
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To: rightwingintelligentsia

why not a raid on the profits of Big Media?


23 posted on 05/06/2008 2:29:20 PM PDT by Republicus2001
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To: Izzy Dunne

Some things you just have to take on trust like those “x-ray glasses” sold on the back of old comic books. Soon as you put them on you were able to see through the scam worked on you.
In the same way soon as this tax is added on we’ll realize the “windfall profits” was for the government and for the “soothing” we’ll just have to take a long walk since we won’t be able to drive anymore.


24 posted on 05/06/2008 2:42:10 PM PDT by count-your-change (you don't have to be brilliant, not being stupid is enough.)
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To: rightwingintelligentsia
House Democrats have also warned of punitive measures if these massive profits continue

Institutional Investors constitute the majority of stockholders in the oil companies. Institutional Investors is a codeword for, among others, PENSIONS! Democrats want to penalize (or raid) your PENSION fund to satisfy their Marxism.

A free society response to a company's increasing profitability is to purchase the company stock. It is absolutely Marxist to demonize a successful company for being successful.

25 posted on 05/06/2008 2:46:35 PM PDT by ricks_place
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To: lakeman
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.

that's what i've been saying! quit talking about it and DO IT ALREADY! hell, the Republicans should vote FOR it, publicizing the fact that they want to show the American people just how economically sound the liberals' taxation policies are.

once people understand, repeal it

26 posted on 05/06/2008 3:05:23 PM PDT by Zeppelin (Keep on FReepin' on...)
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To: rightwingintelligentsia

The oil company’s profits are not “windfall.”


27 posted on 05/06/2008 3:15:34 PM PDT by CPOSharky (Vote demoncrat: Kiss goodby to your money, privacy, freedom, and guns.)
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To: rightwingintelligentsia

so let me get this straight....

gasoline costs $4.00/gallon.......

the lib/dems tax the oil companies.....

oil companies to maintain profits now charge...

$4.25/gallon for gasoline......

guess the lib/dems taught the oil companies a valuable lesson and are fighting for the people of the US!!!


28 posted on 05/06/2008 3:44:42 PM PDT by nyyankeefan
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To: rightwingintelligentsia

Why do I get the feeling that big problems have been deliberately invented to bring on drastic “resolutions”, which will, no doubt, make wide inroads tko our Constitutional rights?

The government is the problem, not the solution!


29 posted on 05/06/2008 5:04:59 PM PDT by Paperdoll ( on the cutting edge.)
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