Democrats' Oil Tax Plan Fails in Senate Vote

foxnews.com/story/0,2933,364846,00.html

They were actually going to try it again; the US Senate was going to impose a Windfall Profit Tax on Oil companies. The bill didn’t come to a vote because of a Republican Filibuster.

Republicans voting against taxpayers and for big business?! Surely you jest. :rolleyes:

Its something to remember the next time you tank up. You may be paying an arm and a leg, but at least the oil companies are making record profits.

You need to do a study of economics and history, the last time Congress enacted a “Windfalls Profit Tax” against the oil companies under President Carter, domestic production of oil DECREASED, import of oil INCREASED and oil prices INCREASED. Besides, this is voting WITH the taxpayer…how many taxpayers have 401Ks IRAs Money Market accounts, etc? How many of these common mom and pop taxpayers…the middle income folks…are invested in oil through these programs? A windfall profit tax will hurt the bottom line of a lot of middle income retirees.

Its something to remember the next time you tank up. You may be paying an arm and a leg, but at least the oil companies are making record profits.

Yes, the oil companies are making record profits…they’re also SPENDING record amounts for the raw material. The PROFIT MARGIN has remained the same…between 8% and 12% depending on the company…so, 10% is the average profit margin. Which is more…10% of $40 or 10% of $135? So, if the profit margin is 10% that means that to earn the $36 Billion Dollars it did in the first quarter of 2008 that the companies spent $360 Billion. That’s the INVESTORS MONEY…like my retired dad…my dad expects a return on INVESTMENT…as do I.

There has been NO WINDFALL PROFIT, they’ve not increased the profit margin at all. Prices are high NOT BECAUSE of oil company profiteering but because of the basic economics of supply and demand not helped at all by speculators.

We could do a lot to bring down the price of oil and help the market find equilibrium by drilling ANWR and the coasts…and all our oil fields…yet the Dems…apparently ignorant of basic laws of economics…don’t want to increase supply by allowing this drilling to occur.

Hey, if you like the idea of a WFPT on Oil Companies…let’s get the Farmers too…Farmers are making more off a bushel of corn than EVER before…surely they’re gouging the prices…

I think the editorial cartoon says it all especially if you look at it in the context of the last person in the cartoon.http://groups.msn.com/isapi/fetch.dll?action=MyPhotos_GetMBPhoto&ImageID=nHQAAAOMKTZlG0yfa2rtnerY4QbSAey!!1x1MYY!W9FenU6yM!sOQeV5yqfuTj1z4

:rolleyes: indeed.

Because, as everyone knows, any extra oil tax would be a cost paid only by the companies and not one that gets passed on to the consumer in the form of higher prices.

– Mark L. Chance.

It appears that the Democrats answer to our energy problems is to tax the oil companies more. That’s it! It purely a political move to make some hay for the November elections. It won’t solve the high price of gas in the U.S. and all the other problems we have in this area.

John

Taxes would exacerbate the problem :mad:

There is really no such thing as a corporate tax, and a windfall tax is just that. Any taxes the government places on corporations, eventually ends up as increased cost to the consumer.

Also, if memory serves me right, Jimmy Carter didn’t put a windfall tax, but a price cap on gas and oil.

Jim

I thought all discussion of political parties was banned. :confused:

Complete ban on candidates. Congress as a whole is fair game.

But how sure are you that they can truly be described as “political parties”?:wink:

In the 70’s there was a prelude to our dilemma with gasoline twice with the long lines at gas stations and discussions about our over dependence on foreign oil. What did the government do to address this obvious quagmire we were in? Nothing, other than blaming the oil companies and hauling them before Congress every once in awhile. Keep in mind the local and federal goverment makes money from the sale of gas when purchased at the stations. So, I won’t bring any political parties into the discussion but lay the blame on all of our elected officials.

John

Let’s examine this - Exxon Mobil has a 100 billion dollars of sales in a quarter because they sell gas and lot’s of people want to travel and use it.

How much profit is normal for a company? 10% 20%

How about 4%-6%. That’s the profit margin of a vast majority of companies. EM makes 9 billion profit in a quarter.(last year) Roughly 9%.

Let’s cut that profit in half and give it back to all the customers. How much do you think your take would be?

Let’s look at the government’s profits from the sale of gas. The fed is capped at 18 cents a gallon. The states like California for example are hauling in 8% of the price with no cap.

Another thing - is Microsoft Corp. stuck at a 4 - 6% profit margin? Hardly!

John

Microsoft is not a good comparison. There are always anomolies.

Government gets a profit without any risk. What a deal.

So the way to bring down the cost of gasoline is make it more expensive for the oil companies to provide gasoline?

This jumping on the oil comanies is nothing but political pandering. It may get one party some votes but don’t expect the price of gas to drop due to it. I have never taken a business or economics class; however, even I can see a how bogus it is to blame the oil companies for the energy situation we are in.

John

Have you all noticed that in all of what passes for discussion in connection with the oil companies, not one single person has posted the amount of income tax that the oil companies pay to the Federal and state governments, OR how much “sales tax” there is on gasoline at the pump. OR how much the oil companies pay in dividends to mutual funds, pension funds, IRA’s, 401(k)'s, and directly to taxable stock accounts owned by individuals … all of these dividends being an important source of retirement income for retired folks, many of whom are government employees.

Ever notice that?

Apart from making a few people feel good, what benefit results from penalizing oil companies and their executives and employees?

And record profits are a positive and good thing.

Nearly half of those profits are paid to the Federal government as income taxes. And another large chunk goes to the States as income taxes. And another chunk goes to retirement plans of millions of individuals around the country.

If there is still some money left over, the oil companies invest it in more production and development. Except when our Liberal Congress votes to prohibit such things as shale oil, gas from shale, refinery construction, nuclear reactors, and such.

Nationalized oil companies in other countries tend to be extremely inefficient. [Not all of them, but many.] And they don’t pay dividends. And if they don’t make profits, they don’t fork money over to their governments, either. And if they don’t make profits, there also isn’t any money available for capital expansion and capital investment in new facilities and new high-tech development.

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