[dila813]

I went and read the entire thing ... but didn’t learn more about “Her plan includes an escalator clause that gives the state a larger share of revenues when oil prices rise. “

That is the part that people say makes her like the wind fall profit tax.

It is all in the details, If she enters the race...I will want more information.

[Covenantor]

ut ?Her plan includes an escalator clause that gives the state a larger share of revenues when oil prices rise.? That is the part that people say makes her like the wind fall profit tax. It is all in the details, If she enters the race...I will want more information.

I'm guessing you never read any commercial and residential standard leases, nor commercial contracts for goods and services.

[onyx]

She's running so she will be talking a lot about oil, natural gas, coal, and tapping our own natural resources. You might also stay on this thread, because Al B. is here and he's just posted a link that might interest you.

[momto6]

This could be off, but the way I understand it is.

If oil is say $120 a barrel that means there isn’t a large supply, someone is not producing and the tax rate is high (under ACES). Before ACES that was an incentive to not produce, keep the price of a barrel high keeping profits high.

Now under ACES there is an incentive to produce more, drill in leases that they have been holding and sitting on. The more they drill and produce the more the price of a barrel drops. As the price of a barrel drops the tax rate drops. Everyone makes more money when the taxes drop, that is the whole point in the deal.

The smartness in this is that oil companies make more money the lower the price of oil is instead of the higher it is. The higher the price (of oil) is the more we (the public) get screwed at the pumps.