Windfall profits tax....

[Waffle]

Ok, let me know if I heard this correctly....

A certain democratic presidential nominee wants to take profits from those mean ol' "big oil" companies, and give it to us poor down trodden souls at the rate of $1000 a family?
I got a better idea  -  Why doesn't he just go after all business, big and small , and take their profits as well?

[Wayout]

Why doesn't he just go after all business, big and small , and take their profits as well?

If elected he will.   

[Slamfire]

Ok, let me know if I heard this correctly....

A certain democratic presidential nominee wants to take profits from those mean ol' "big oil" companies, and give it to us poor down trodden souls at the rate of $1000 a family?
I got a better idea  -  Why doesn't he just go after all business, big and small , and take their profits as well?

I'm honestly surprised he isn't just giving away an XBAWKS for his vote - he'd get better results.

[john9001]

it's very simple, he wants to take money from the oil companies and give to to people so the people can give it back to the oil companies. Because he is taking profits which will go back to the oil companies , the oil companies will now show bigger profits on the books. That bigger profit will be then taxed, of course the govt will have to deduct shipping and handling for moving the money around.

[myelo]

It's a stupid idea, just like the previous one in 1980, which didn't work. It's just another example of selfish politicians pandering to voters who should know better. Just like the failed Bush tax rebate I might add (for titty twisting purposes).

Besides, what about food prices? Those are also going through the roof. Anybody suggesting a windfall profit tax on farmers? Of course not, because politicians aren't about to tick off the farm lobby. But a lot of idiot voters will buy into the idea of "punishing" the evil oil companies.

[indy007]

I like how an 8% profit margin is a "windfall".

[Charon]

Why doesn't he just go after all business, big and small , and take their profits as well?

You do what you can, when you can. Just keep your eyes on the prize

He is from Crook County, Illinois -- Tax capital of the US.


Charon

[lazs2]

nope..   tax rebates are always a good thing.. taxing more is always a bad thing.

Taking money from one person and giving it to another is nothing like the government giving you back your money.

The government made more money on every gallon of gas sold than the oil companies did.. why doesn't the government get a windfall tax on them?

The states get sales tax gasoline based not on a gallon but on a dollar.. they have gotten true "windfall" profits that have more than trippled in the last few years.. you don't hear much about that tho.

lazs

[Cthulhu]

Ok, let me know if I heard this correctly....

A certain democratic presidential nominee wants to take profits from those mean ol' "big oil" companies, and give it to us poor down trodden souls at the rate of $1000 a family?
I got a better idea  -  Why doesn't he just go after all business, big and small , and take their profits as well?

Make that $1000 for families that paid little or no taxes in the first place.

I'm actually surprised he's not talking about nationalizing the oil industry.

[CAP1]

Make that $1000 for families that paid little or no taxes in the first place.

I'm actually surprised he's not talking about nationalizing the oil industry.

wait'll he's appointed.........eerr...i mean wins the election.....

[Delirium]

I like how an 8% profit margin is a "windfall".

The oil companies have made more profit than any company in history. Sure, it is an 8% margin but the market isn't an open market, ie HTC couldn't start their own oil company.

That said, taxing 'windfall profits' will not work as the oil company will just pass the cost onto the consumer.

[Toad]

http://www.csmonitor.com/2008/0807/p09s01-coop.html

In the first quarter of 2008, Big Oil had a profit margin of 7.4 percent. Over that same period, the pharmaceutical and medicine industry earned a 25.9 percent profit, the chemical industry earned 15.7 percent and the electronic equipment industry earned 12.1 percent.

What about those movie theater refreshments? Four large popcorns and four large sodas cost $31.50. The total raw ingredient cost is approximately $7.56. That equals a 76 percent gross margin. Where is the political outrage over that figure?

[Waffle]

The oil companies have made more profit than any company in history. Sure, it is an 8% margin but the market isn't an open market, ie HTC couldn't start their own oil company.

That said, taxing 'windfall profits' will not work as the oil company will just pass the cost onto the consumer.

But they also paid alot of taxes themselves.....

http://www.taxfoundation.org/blog/show/2195.html

and from this article: http://seekingalpha.com/article/63131-exxon-s-2007-tax-bill-30-billion

"Conclusion: In other words, just one corporation (Exxon Mobil) pays as much in taxes ($27 billion) annually as the entire bottom 50% of individual taxpayers, which is 65,000,000 people! Further, the tax rate for the bottom 50% is only 3% of adjusted gross income ($27.4 billion / $922 billion), and the tax rate for Exxon was 41% in 2006 ($67.4 billion in taxable income, $27.9 billion in taxes). "

Wonder if the democrats remember simple sayings like "don't bite the hand that feeds you"

BTW - I'm currently working on "Waffle's Oil Patch" But can't seem to get the neighborhood association to let me build a small rig in my front yard.

[Maverick]

Blaming the oil companies for the price of gas is rather silly. It's the retailers that are in the public eye so obambam is just pandering to the misconception that they are to blame for the price of crude. Exxon and the others do not set the market price for oil they just have to deal with it like we do.

BTW every cost to the big oil companies is passed on to the rest of us since they are in the business of making money just like every other for profit business. This is just another disguised tax on those who can afford it the least, those who have to buy gas or diesel to get by.

[Donzo]

One thing not pointed out much is the fact that MANY mutual funds have the big oil companies in their portfolio.

Slapping a windfall profits tax on them would have a negative effect on people's retirement accounts.

This is not meant to be a reason not to slap them with a windfall profits tax...they should not be subject to a windfall profits tax simply because it is pathetic to even suggest that.