Posted on 04/29/2008 7:08:59 AM PDT by Born Conservative
WILKES-BARRE – U.S. Rep. Paul Kanjorski said it’s time for America to stand up to the big oil companies and shout out, “We’ve had enough.”
Kanjorski, D-Nanticoke, was in town Monday to announce his introduction of House Resolution 5800, the Consumer Reasonable Energy Price Protection Act of 2008. The bill, introduced on the House floor April 15, would allow the federal government to tax windfall oil and gas profits resulting from historically high oil and gas prices that average Americans struggle to afford, he said.
The 12-term incumbent acknowledged his proposal and four similar ones in the House of Representatives don’t have a chance of becoming law.
“But even if we can get them through Congress, the president has already said he will veto them,” Kanjorski said. “Thank goodness this is a presidential election year. We really need new leadership. People will be voting on substantive issues in this election – the economy, health care, education.”
Kanjorski said industries yield windfall profits when earnings exceed what a Reasonable Profits Board determines is rational, as laid out in the legislation.
The proposal was referred to the Committee on Ways and Means, and to the Committee on Appropriations, for a period to be determined by House Speaker Nancy Pelosi.
Speaking at Phil’s Sunoco Gas Station on South Main Street, Kanjorski blasted the Bush administration, saying the more than $15 billion in tax breaks given to oil companies have “done nothing” to benefit consumers. Gas was priced at $3.59.9 for octane 87 at Phil’s on Monday.
In 2007, Kanjorski said the Big Five oil companies reported record profits, with Exxon Mobil making more than $40 billion -- the largest corporate profit in American history. In a few days, Exxon is expected to announce its net income will rise around 22 percent. A windfall tax would help discourage these industries from consistently increasing their prices, the congressman said.
Kanjorski said the oil companies are not sympathetic to the plight of the American gas customers. He said things have to change soon.
“We’re paying $120 per barrel of oil, when we used to pay $20 or $30,” Kanjorski said. “And we have sent 130,000 of our sons and daughters to fight to preserve their independence. The oil countries are trying to bring America to its knees, and we can’t let that happen.”
Kanjorski said his bill is the latest of five proposals that have passed the House of Representatives. He said the bills always seem to stall in the Senate.
Kanjorski said he can’t understand why the oil companies can’t take a lesser profit.
“If gas costs $8 per gallon, will people still buy it?” Kanjorski asked. “I’m convinced that the only way to make it affordable is to use less gas. We have to send a message.”
Phil Pisano owns the Sunoco station that his father opened in 1958. He said he hasn’t seen a drop off in gas sales despite the rising cost per gallon.
“They’re still buying it,” Pisano said. “But they are always complaining about the high prices. They understand it’s not my fault.”
Pisano’s dad died on March 12. Pisano said his dad had hoped to celebrate 50 years in the business.
“He never retired,” Pisano said of his father. “My son works here now. Thank God we have our repair business or we couldn’t survive.”
Pisano said even though the price at the pump is higher, his profits haven’t increased.
While Pisano was working, Joseph and Rosemary Morrash stopped to fill up. They were returning to Pittsburgh after attending a family reunion in Wilkes-Barre over the weekend.
“It’s a little ridiculous,” said Mr. Morrash about the price of gas. “I don’t mind them making a profit, but there should be a limit. The oil companies make enough money; they shouldn’t be so greedy.”
Morrash said he will contact his congressman, U.S. Rep. Mike Doyle, D-Pittsburgh, when he returns to ask him to support Kanjorski’s bill.
Kanjorski’s plan • H.R. 5800 would tax industries’ windfall profits.
• The bill would set up a Reasonable Profits Board to determine when these companies’ profits are in excess, and then tax them on those windfall profits.
• As oil and gas companies’ windfall profits increase, so would the tax rate for those companies.
• Kanjorski said his legislation will encourage oil companies to lower prices to prevent them from receiving higher tax rates.
• According to AAA, gas prices have reached a record $3.613 a gallon in Northeastern Pennsylvania, more than 70 cents higher than the pump price a year ago and more than double the price in 2001.
WTF! Who gets to decide what constitutes a Reasonable Profit?
Who has Kanjorski endorsed for president? It would be interesting. It looks as though he nothing to run on, if he is advocating a raid on “big oil profits”. I think that by now people are beginning to realize that any time the gov’t tries to “rein in” the oil companies, the only ones that gets hurt are the public.
Ten bucks says that’s not the only thing he doesn’t understand.
Only a fool would take that bet. Someone like the good Congressman... :^D
When over half of America isn't dependendent on that selfsame big government.
IOW, it's already too late.
Probably true.
He's solidly behind the Hildebeast.
The Soviet Politburo in Washington, DC.
We're almost certain to get a Democrat Congress, along with a President who is prepared to -- at least -- go along with them.
That means we're almost certain to get some kind of "windfall profits tax" on the oil companies. And some kind of price-fixing at the pump.
The almost certain result of these machinations is that:
a. We'll get gasoline capped at, say, $2.999
b. And there won't be any.
See Carter Administration ("old oil/new oil").
How often do we need to go through this BS to understand that liberals are only capable of increasing the pie when they're allowed to crap in the plate?
Will homeowners face a windfall tax on whatever this Reasonable Prices Board defines as an excessive real estate profit? Congressman Kanjorski? Anyone? Anyone?
ABSOLUTELY. And, homeowners will face an "imputed income" tax on their home for the amount it would have cost them to rent it. This has already been proposed and was narrowly defeated in the past.
Didn’t Clinton also propose a “one-time” tax on 401K assets?
I'm not sure, but I think that was Dee Revin Jesse Jackass who was given much more media attention for his racist brayings under Clinton than he ever deserved. If Obama gets in he'll make the Clinton years seem like paradise.
When you're a moron and start from a faulty premise, you're going suggest stupid things. Oil companies don't set prices any more than a farmer can set the price for his commodity.
If oil companies could set prices, why did the oil market crash in the mid 1980s and stay a lousy business for 15 years? Why did oil companies lay off enormous amounts of employees, go bankrupt, or merge in order to survive?
Taxing oil companies differentially from the rest of the industry will do nothing to lower the price of gasoline. It will take money away from oil companies which they use to drill new wells.
So, if anything, this new tax would further restrict supply and RAISE prices.
Gawd, I hate congressmen.
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