U.S. should consider windfall oil tax

[E-Nice]

Specter: U.S. should consider windfall oil tax

Leading GOP Senator blames reduced competition for high oil, pump prices

http://www.msnbc.msn.com/id/12451034/


WASHINGTON - The government should consider a tax on oil companies if they make excessive profits amid rising gasoline prices, a leading Republican senator said Sunday.

Pennsylvania Sen. Arlen Specter, chairman of the Senate Judiciary Committee, said a windfall profits tax, along with measures to stem concentration of market power among a few select oil companies, could offer eventual relief to consumers hurting at the gas pump.
"I believe that we have allowed too many companies to get together to reduce competition," Specter said.


"They get together, reduce the supply of oil, and that drives up prices," he said. "In the short run, it's hard to deal with it for tomorrow. But I think windfall profits, eliminating the antitrust exemption, considering the excessive concentration of power are all items we ought to be addressing."

Specter is backing legislation that would strengthen antitrust laws on oil company mergers after his committee held a hearing last month examining the growing consolidation of the oil industry. The nation's largest oil companies, including Exxon Mobil Corp., have denied their industry size has affected prices.

Last week, crude-oil prices hit record highs and average gasoline prices nationwide neared $3 a gallon.

Sen. Carl Levin, D-Mich., said he believes gas prices "would come down within a matter of days" if President Bush told oil companies that he was going to support a windfall profits tax.

"But the president will not call the oil companies into his office because he's been too closely allied with those oil companies, and if he does it's going to be a window-dressing conversation," said Levin, who appeared with Specter on CNN's "Late Edition."

[zerojunkie]

that's it...Specter's officially kicked out of the GOP. Windfall profits my ass.

[Element4040]

Define Windfall? Do these guys even take themselves seriously anymore?

[Adam D]

It's political posturing. They know they won't really pass any such legislation.

[PETA]

hmmm

1) when oil hits a glut and sells for $15 a barrell should we subsidize the oil industry then?

2) does this fucking idiot from Pennsylvania think we're stupid? Next time you're at the pump - read how much per gallon is collected in tax revenues - upwards of 50% of the price per gallon.
http://www.energy.ca.gov/gasoline/st...tate_2002.html 42% as a national average according to this oil industry chart from 2002

more recent - state by state - http://www.gaspricewatch.com/usgastaxes.asp

federal tax is or war 18.4 cents per gallon in 2005

According to financial analyst I listened to oil companies typically earn about $.09 per gallon.

3) so - now who do you think is gouging us?

[thumpcbd]

Originally Posted by xian

hmmm

1) when oil hits a glut and sells for $15 a barrell should we subsidize the oil industry then?

2) does this fucking idiot from Pennsylvania think we're stupid? Next time you're at the pump - read how much per gallon is collected in tax revenues - upwards of 50% of the price per gallon.
http://www.energy.ca.gov/gasoline/st...tate_2002.html 42% as a national average according to this oil industry chart from 2002

more recent - state by state - http://www.gaspricewatch.com/usgastaxes.asp

federal tax is or war 18.4 cents per gallon in 2005

According to financial analyst I listened to oil companies typically earn about $.09 per gallon.

3) so - now who do you think is gouging us?

Sheeh, don't go telling everyone that the altruistic govt earns more per gallon then big oil. We all know the govt is all good, kind and caring, and would never do something that others can’t. (You know like making a state lottery legal, while banning any other entities from running gambling operations.)

Casey

[PETA]

Originally Posted by thumpcbd

Sheeh, don't go telling everyone that the altruistic govt earns more per gallon then big oil. We all know the govt is all good, kind and caring, and would never do something that others can’t. (You know like making a state lottery legal, while banning any other entities from running gambling operations.)

Casey

I must point out that I goofed a bit. I said x% per gallon and the taxes are actually in cents per gallon. Still - the gov't makes more on gasoline than big oil does.

[kalamu]

so what is the objection to the windfall tax idea? i heard about it briefly on the news but haven't read about it in detail

[PETA]

Originally Posted by kalamu

so what is the objection to the windfall tax idea? i heard about it briefly on the news but haven't read about it in detail

would you demand a subsidy when the profit margins fall into the toilet?

If not then demanding a tax on the profit margins when they exceed a certain point would be inconsistent and would have the distinct odor of communist economic controls.

let the market do its job - we cannot repeal the laws of supply and demand

[Dionysos]

Originally Posted by xian

let the market do its job - we cannot repeal the laws of supply and demand

I'm not in favor of price controls on oil, but I'm also not in favor of unfettered free market capitalism. There is one thing Bush has said lately I agree with, that energy independence is a vital national security interest. One of the few areas in which I believe the government should intervene is in pushing alternative fuels. I'm tired of being hamstrung by OPEC and the black crack, and it is in the country's best interest to get off the sauce as much as possible.

[PETA]

Originally Posted by Dionysos

I'm not in favor of price controls on oil, but I'm also not in favor of unfettered free market capitalism. There is one thing Bush has said lately I agree with, that energy independence is a vital national security interest.

Absolutely true - or so I believe anyway.

Originally Posted by Dionysos

One of the few areas in which I believe the government should intervene is in pushing alternative fuels. I'm tired of being hamstrung by OPEC and the black crack, and it is in the country's best interest to get off the sauce as much as possible.

yup - even though we get most of our oil from non-OPEC states they influence the market heavily for the price per barrel

[Edwin Watson]

Originally Posted by xian

Absolutely true - or so I believe anyway.



yup - even though we get most of our oil from non-OPEC states they influence the market heavily for the price per barrel

something like 60-70% of our oil comes from US, Mexico and Canada.

If I remember correctly, we only actually get something like 8-10% of our oil from the Saudi's.

ANWR at best estimates would only provide about 3-4% of our oil supply and those numbers would peak within 5 years and quickly drop to less than one half of a percent within about the 10 year mark.... Not a solution and I personally would rather leave it pristine. It is better for the long run, which is a timeframe that most americans have problems thinking in.

In addition, that massive initial investment of several billion dollars could be put to better use researching and implementing alternative fuel programs and would present a long term solution.

I wish the American companies would follow the path set by BP and invest more heavily in alternative fuels....

[PETA]

Originally Posted by Edwin Watson

something like 60-70% of our oil comes from US, Mexico and Canada.

If I remember correctly, we only actually get something like 8-10% of our oil from the Saudi's.

ANWR at best estimates would only provide about 3-4% of our oil supply and those numbers would peak within 5 years and quickly drop to less than one half of a percent within about the 10 year mark.... Not a solution and I personally would rather leave it pristine.

It is better for the long run, which is a timeframe that most americans have problems thinking in.

In addition, that massive initial investment of several billion dollars could be put to better use researching and implementing alternative fuel programs and would present a long term solution.

I wish the American companies would follow the path set by BP and invest more heavily in alternative fuels....

Very much not a permanent solution - but as every oil field will eventually run dry neither is any other oil field a permanent solution.

As for pristine actic wastes - you plan on visiting it anytime soon?

As for the opportunity cost of building an infrastructure - speculative but reasonable to be sure

[Dionysos]

Originally Posted by Edwin Watson

something like 60-70% of our oil comes from US, Mexico and Canada..

More like 80%. The US takes care of nearly half its own production, and Mexico, Canada, & Venezuela account for more imported oil than SA does(though Venezuela & SA are about even).

[Edwin Watson]

Originally Posted by xian

Very much not a permanent solution - but as every oil field will eventually run dry neither is any other oil field a permanent solution.

As for pristine actic wastes - you plan on visiting it anytime soon?

well i am glad we agree and yes, i have before and i intend to again....


(my sister is an archeologist and does digs up there occassionally :P )

Originally Posted by Dionysos

More like 80%. The US takes care of nearly half its own production, and Mexico, Canada, & Venezuela account for more imported oil than SA does(though Venezuela & SA are about even).

i was excluding Venezuela from that equation, because it is an OPEC country and they dont like us very much right now, but you are correct.