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Obama shelves oil company tax after price fall: aide
Reuters ^ | December 2, 2008 | Jeff Mason and Tom Doggett

Posted on 12/03/2008 2:53:42 PM PST by NRG1973

President-elect Barack Obama is not planning to implement a windfall profit tax on oil companies because prices have dropped below $80 a barrel, an aide said on Tuesday.

"President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel," an aide on Obama's transition team said. "They are currently below that now and expected to stay below that."

Oil prices have fallen from a record $147 a barrel in July to under $50 this week.

Obama, who signaled early in his campaign for the White House that he would take an active approach to oil markets as president, had planned to use the revenue from a windfall profits tax to fund a tax rebate for low- and middle-income families struggling with high energy prices.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: brokepromise; energy; obama; obamatransitionfile; oil; tax
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If oil prices continue to decline, there may not be any windfall profits to tax.
1 posted on 12/03/2008 2:53:42 PM PST by NRG1973
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To: NRG1973

“If oil prices continue to decline, there may not be any windfall profits to tax.”

Then...we will have to BAIL THEM OUT...


2 posted on 12/03/2008 2:55:16 PM PST by jessduntno (Barack - Kenyan for "High Wind, Big Thunder, No Rain")
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To: NRG1973
Obama's just breaking all kind of campaign promises now the election is over...

Is it too late for a recall? How about if it's deemed he's not a Natural Born Citizen -- can he be recalled then??

3 posted on 12/03/2008 2:57:37 PM PST by BP2 (I think, therefore I'm a conservative)
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To: NRG1973
The Kenyan cannot be trusted.....
4 posted on 12/03/2008 2:58:53 PM PST by BenLurkin
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To: NRG1973

Does any idiot in Washington or the states for that matter, realize that taxes get passed on to the customer?


5 posted on 12/03/2008 2:59:45 PM PST by brooklin
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To: NRG1973
Obama is not planning to implement a windfall profit tax >>>>>>>>>>>>>>>>>>>>>>>>

And I suppose we ae supposed to feel grateful?

EFF YOU OBAMA!

America deserves NO NEW TAXES!

Stuff it Obama, you Commie maggot!

Wind Fall indeed.Since when does HE decide what is profit and what is too much profit? Its none of his bloody business.

Stinkin' Commie

6 posted on 12/03/2008 3:02:36 PM PST by Candor7 (Fascism? All it takes is for good men to say nothing, ( member NRA)
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To: NRG1973
there may not be any windfall profits to tax

There were plenty of taxes already on the recent profits.


7 posted on 12/03/2008 3:04:26 PM PST by thackney (life is fragile, handle with prayer)
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To: brooklin

“Does any idiot in Washington or the states for that matter, realize that taxes get passed on to the customer?”

Actually, I think that is a myth. It really isn’t possible to pass on costs, since raising prices results in a decrease in demand. Asw I understand it, businesses pass increased costs back to the origin of production. That is, they produce less, which makes our economy less efficient.


8 posted on 12/03/2008 3:04:46 PM PST by Tublecane
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To: NRG1973

If the oil companies deserved blame back when prices were high, shouldn’t we be thanking them now? Instead of a windfall profits tax, Obama should sign an executive order thanking them for their patriotism.


9 posted on 12/03/2008 3:06:01 PM PST by Tublecane
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To: NRG1973
Snort! Those weren't windfall profits in the first place :)

In the second place, a show of hands please of how many people believe anything Barry says....

Hmmmm. I thought so.

10 posted on 12/03/2008 3:08:04 PM PST by mewzilla (In politics the middle way is none at all. John Adams)
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To: thackney

Please help me to understand something about that graph. How is that Exxon paid more in taxes than they made in profits? Is the cost of leasing and royalties included as taxes?


11 posted on 12/03/2008 3:08:43 PM PST by NRG1973
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To: NRG1973

He doesn’t have to do anything and he can say all he wants about taxes. Its pelosi and stinky reid we have to worry about. I’m sure Obama will sign anything they get to him to put his sig on.


12 posted on 12/03/2008 3:13:59 PM PST by Always Independent
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To: NRG1973

You’re confusing profits with revenue. In layman’s terms, think of it as a pie. The whole pie is total revenue. Each slice is an expense of some sort. That big slice that your fat cousin ate at the Thanksgiving dinner is what they pay in taxes. That little sliver that your aunt who’s always on a diet asks for is the profit, at least in Obama’s economy.


13 posted on 12/03/2008 3:19:22 PM PST by mellow velo
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To: NRG1973

“Please help me to understand something about that graph. How is that Exxon paid more in taxes than they made in profits?”

Those are probably after-tax profits. Oil companies (just like you) pay many taxes that are not taxes on income. You may be in the 36% tax bracket for Federal taxes, but if you add up all the taxes you pay (property, sales, gasoline, mass transit, environmental, state, capital gains etc.), you may be paying over 50% of your income in taxes.

If you look at your household as a business, your costs of living, eating, shelter, transportation, insurance and so on are not profit. Profit is what’s left over after all expenses. So, you pay taxes, and yet often have less money at the end of a year. You made no profit, you took a loss for the year, and you also paid taxes.


14 posted on 12/03/2008 3:22:48 PM PST by SaxxonWoods (Charter Member, 58 Million Club)
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To: mewzilla
From May....

Windfall-Profit Nonsense

15 posted on 12/03/2008 3:23:28 PM PST by mewzilla (In politics the middle way is none at all. John Adams)
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To: thackney

Just remember, to a socialist:

Money is evil.

Success must be punished because it’s only possible through exploitation.


16 posted on 12/03/2008 3:37:32 PM PST by Red6
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To: jessduntno

Since the US Public knows what $4 gas (at least) is like, it’s more likely we’ll see it again, not because of a rise in oil, but of a new tax that makes up the difference.


17 posted on 12/03/2008 3:40:42 PM PST by Boiling Pots (Anthony Kennedy: The 2nd most important person in Government 2009-2013. Pray for his good health.)
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To: BP2

When he breaks bad promises, I will not complain.


18 posted on 12/03/2008 3:57:44 PM PST by Captain Kirk
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To: NRG1973
Photobucket


19 posted on 12/03/2008 4:38:26 PM PST by Sarajevo (I hear moon crickets...........chirping.)
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To: jessduntno
Then...we will have to BAIL THEM OUT...

BS. They should have plenty of money from when prices were $4+.
20 posted on 12/03/2008 4:40:45 PM PST by mysterio
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